Which of the Following Is a Tender Offer That Utilizes

question 72

Multiple Choice

Which of the following is a tender offer that utilizes borrowed funds and the acquired firm's assets as collateral?

• A) Unfriendly take-over
• B) Divestiture
• C) Two-step buy-out
• D) Leveraged buy-out

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Definitions:

Lease Obligation

A financial commitment to make future payments under a lease agreement.

Sales-leaseback Transaction

A financial arrangement where one sells an asset and immediately leases it back from the buyer, effectively freeing up cash while retaining the use of the asset.

Seller-lessee

In a sale-leaseback transaction, the original owner who sells an asset and then leases it back from the new owner, retaining possession and use of the asset.

Deferred

Postponed or delayed; in financial terms, it often refers to expenses or income that will be realized at a future date.