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    Business
  3. Study Set
    Mergers Acquisitions
  4. Exam
    Exam 14: Highly Leveraged Transactions: Lbo Valuation and Modeling Basics
  5. Question
    The Deal Makes Sense to Lenders and Noncommon Equity Investors
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The Deal Makes Sense to Lenders and Noncommon Equity Investors

Question 45

Question 45

True/False

The deal makes sense to lenders and noncommon equity investors if the present value of free cash flow to equity investors exceeds the total cost of the deal.

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