Involuntary Divestitures Generally Have What Effects

question 19

Multiple Choice

Involuntary divestitures generally have what effects?

• A) Positive
• B) Negative
• C) No consistent effects
• D) None of the above

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Definitions:

Cash Coverage Ratio

This is a measure of a company's ability to cover its debt obligations with its available cash and cash equivalents.

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.

Enterprise Multiple

A ratio used to determine the value of a company that takes into account its debt and equity, calculated by dividing the enterprise value by EBITDA.