All of the Following Are Characteristics of Leveraged Buyouts EXCEPT

question 76

Multiple Choice

All of the following are characteristics of leveraged buyouts EXCEPT:

• A)A large amount of the purchase price is borrowed.
• B)The purchased assets of the bought firm are used as collateral for the buyout.
• C)LBOs have led to enormous wealth increases for the common stockholders of the acquired firm.
• D)The impact of most LBOs has been an increase in the bond ratings of the acquired firm because of the decrease in perceived risk.

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Definitions:

Affect-As-Information

The theory that emotions can guide us in decision-making and judgments by providing quick, heuristic information about situations.

Affective Forecasting

The process of predicting one's future emotional states or reactions in specific situations.

Affect Balance

A measure of the extent to which positive emotional experiences outweigh negative ones in an individual's life.

Moral Virtue

Characteristics or qualities deemed to be morally good and valued as a foundation for good moral being.