Which of the Following Is Incorrect with Respect to Leverage

question 38

Multiple Choice

Which of the following is incorrect with respect to leverage buyouts (LBOs) ?

• A) They originated in the 1960s and were originally known as bootstrap transactions which reflected the general consensus that the firm was, more or less, paying for its own acquisition.
• B) The typical LBO uses a ratio of 70% debt to 30% equity but levels of debt can reach much higher.
• C) LBOs are an extreme example of releveraging because debt is used to buy out the majority of the equityholders to gain control of the firm.
• D) None of these statements is incorrect.

Understand how gender expectations influence personal and professional choices.

Recognize the contributions and challenges of individuals who defy traditional gender roles.

Understand the evolution of laws and societal attitudes towards gender equality and non-heteronormative relationships.

Understand the role of gender norms and stereotypes in society.

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Definitions:

Universalization Test

The ethical guideline that urges us to consider, before we act, what the world would be like if everyone acted in this way.

Ethical Guidelines

Standards of behavior and professional conduct expected within a specific field or profession.

Stakeholder

An individual or group with an interest or concern in the success of an organization, project, or outcome.

Community

A group of people living in the same place or having a particular characteristic in common, or the sense of fellowship arising from shared beliefs, interests, or goals.