The corporate debt rating of ford motor company is currently

The corporate debt rating of ford motor company is currently considered to be just above high yield. If the S&P were to give ford a double -A rating, what would most likely happen to its stock price?

A) their stock price would most likely become more volatile

B) The way negotiations with the UAW have gone in the past, their stock price would most likely go down

C) the stock price would most likely appreciate in value

D) since credit ratings pertain to bonds, the stock price would probably remain flat

E) Both A and D above

Solution

Correct option for this question is A. stock price would most likely become more volatile.