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List Three Types of Bad-News Replies Discussed in the Textbook

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Essay

List three types of bad-news replies discussed in the textbook.Provide an example of a situation wherein each type of reply is appropriate.


Definitions:

Comparable Companies

A method of valuation which involves comparing the economic ratios of a company to those of its peers within the same industry in order to evaluate its financial health and determine its market value.

Ratios

Quantitative measurements that show the relationship between two numerical values or financial figures, often used to analyze companies' financial health.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of outstanding stock on the open market.

Return On Equity

A measure of a corporation's profitability, indicating how much profit is generated with the money shareholders have invested.

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