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That still doesn't explain the large gap between debt and market cap mentioned in the article. If the debt was all tied up in car assets those would balance ou
by SomewhatLikely 6y ago
That still doesn't explain the large gap between debt and market cap mentioned in the article. If the debt was all tied up in car assets those would balance out or even lead to a positive market cap difference assuming they can generate profits from renting the cars.
- airstrike 6y agoEquity holders stand to lose everything if the company goes south, so if there's so much debt that the future of the company is at risk, there's something call "cost of financial distress" that reduces the value of holding that stock