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Stock impact report

Is Pfizer (NYSE:PFE) A Risky Investment? [Yahoo! Finance]

Pfizer, Inc. (PFE) 
Last pfizer, inc. earnings: 4/28 06:45 am Check Earnings Report
Company Research Source: Yahoo! Finance
So it seems the smart money knows that debt - which is usually involved in bankruptcies - is a very important factor, when you assess how risky a company is. Importantly, Pfizer Inc. NYSE:PFE ) does carry debt. But the more important question is: how much risk is that debt creating? This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company can't fulfill its legal obligations to repay debt, shareholders could walk away with nothing. However, a more frequent (but still costly) occurrence is where a company must issue shares at bargain-basement prices, permanently diluting shareholders, just to shore up its balance sheet. Of course, the upside of debt is that it often represents cheap capital, especially when it replaces dilution Show less Read more
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