Which of the Following Is One of the Two Most

question 45

Multiple Choice

Which of the following is one of the two most important sources of value in a leveraged buyout?

• A)ability to keep existing management in place
• B)interest tax shields associated with debt
• C)synergies
• D)reduced competition

---

Definitions:

Market Value

The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller.

Par Value

The face value of a bond or stock as stated on the certificate or charter, often used for legal capital or accounting purposes.

Cash

A form of currency that includes coins and paper notes, which is used as a medium of exchange for goods and services.

Shares

Units of ownership interest in a corporation or financial asset, which provide for an equal distribution in any profits, if any are declared, in the form of dividends.