Multiple Choice
All of the following are characteristics of leveraged buyouts EXCEPT _____.
A) a large amount of the purchase price is borrowed
B) the purchased assets of the bought firm are used as collateral for the buyout
C) LBOs have led to enormous wealth increases for the common stockholders of the acquired firm
D) the impact of most LBOs has been an increase in the bond ratings of the acquired firm because of the decrease in perceived risk
Correct Answer:
Verified
Correct Answer:
Verified
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