Which of the Following Is Generally Not True About Leveraged

question 34

Multiple Choice

Which of the following is generally not true about leveraged buyouts?

• A) Borrowed funds are used to pay for all or most of the purchase price, perhaps as much as 90%
• B) Tangible assets of the target firm are often used as collateral for loans.
• C) Bank loans are often secured by the target firm's intangible assets
• D) Secured debt is often referred to as junk bond financing.
• E) C and D only