medium · Investment Banking valuation-core

Which of the following is the most defensible reason for a company to have negative Shareholders' Equity on its balance sheet?

1. The company has undergone large-scale share buybacks and has significant accumulated losses.
2. The market value of the company's shares has fallen below their par value amount.
3. The company simply holds more cash than debt, creating a negative net debt balance overall.
4. The company has recorded too much Goodwill from previous expensive acquisitions on its balance sheet.

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