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The Value of a Corporation in a Levered Buyout Is

Question 16

Multiple Choice

The value of a corporation in a levered buyout is composed of which following four parts:


A) unlevered cash flows and interest tax shields during the debt paydown period, unlevered terminal value, and asset sales.
B) unlevered cash flows and interest tax shields during the debt paydown period, unlevered terminal value and interest tax shields after the paydown period.
C) levered cash flows and interest tax shields during the debt paydown period, levered terminal value and interest tax shields after the paydown period.
D) levered cash flows and interest tax shields during the debt paydown period, unlevered terminal value and interest tax shields after the paydown period.
E) asset sales, unlevered cash flows during the paydown period, interest tax shields and unlevered terminal valuE.

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