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sephil@123 sephil@123
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6 years ago
A leveraged buyout allows the purchaser to use the assets of the company being acquired as security for the loan being used to finance the purchase.
A. True
B. False
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wrote...
Valued Member
6 years ago
TRUE
Explanation: In a leveraged buyout, one firm borrows money to buy another firm. If earnings continue to grow, the debt can be paid off. But if things go wrong, the debt can become a crushing burden.
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