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Business, 11.09.2019 19:30 lazok

Nits 2001 annual report, investors of adelphia communications were startled to find a footnote to its financial statements that reported the company had guaranteed as much as $2.7 billion in loans to a private entity owned by ceo john rigas and his family. as a result of the footnote, adelphia lost more than 50 percent of its market value in little more than a week. because the loan guarantees were disclosed in footnotes to the financial statements, the market value decline was not warranted and resulted from investor overreaction. a. true b. false

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