The Free-Cash-Flow Theory of Takeovers Predicts That

question 112

Multiple Choice

The free-cash-flow theory of takeovers predicts that:

• A) firms without free cash flow will become the most common LBOs.
• B) firms with free cash flow will continue to be the acquirers.
• C) firms with excess cash do not have a tendency to use it wisely.
• D) all of these.

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