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When the Maker of a Note Is Unable or Refuses

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Short Answer

When the maker of a note is unable or refuses to pay at maturity, the note is said to be ________.


Definitions:

Present Value of Growth Opportunities

The value today of an investment's expected growth opportunities, used to analyze potential future value creation.

ROE

Return on Equity is an indicator of a company's financial performance, illustrating the amount of profit generated per dollar of shareholders' investment.

Expected Earnings

The projected profits or income of a company, often used in assessing its stock price.

Earnings Retention Ratio

The portion of a company's profits that is reinvested in the business rather than distributed to shareholders as dividends.

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