Asset Based Lenders Will Usually Lend Up to 100% If

question 2

True/False

Asset based lenders will usually lend up to 100% if the book value of the LBO target's receivables.

---

Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors to compensate for the risk they take by investing in the stock.

Annual Dividend

The total amount of dividend payments a shareholder receives from a company in one year.

Market Price

The present price at which a good or service is available for purchase or sale in the market.

Growth Rate

The growth rate is a measure of the increase in size, number, value, or strength of a business, investment, population, or other measurable entity, usually expressed as a percentage over a specific period of time.