Multiple Choice
What is the resulting capital structure after an LBO if prior to the deal the firm had $225M in equity and $10M in debt, and the acquiring group bought the company's stock at book value contributing $20M of its own money and borrowing the rest?
A) Debt $10M; Equity $215M
B) Debt $215M; Equity $10M
C) Debt $215M; Equity $20M
D) Debt $225M; Equity $10M
Correct Answer:
Verified
Correct Answer:
Verified
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