In Most ________,The Debt Capital Usually Exceeds the Equity by a Ratio

question 64

Multiple Choice

In most ________,the debt capital usually exceeds the equity by a ratio of 5:1.

• A) mergers
• B) leveraged buyouts
• C) hostile takeovers
• D) franchises

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Definitions:

Federal Government

The national government of a federation, which holds authority over the matters that are not delegated to the constituent units.

Potash Inc.

A company or entity involved in the production or supply of potash, a potassium-containing salt used in agriculture, industry, and other sectors.

Operating Synergy

The cost reductions achieved by economies of scales produced by a merger or acquisition.

Economy-of-Scope Advantage

Benefits derived from the ability of a company to produce a variety of products together more efficiently than producing each one of them on its own.