LBO investors must be very careful not to overpay for a target firm because
A. Major competitors tend to become more aggressive when a firm takes on large amounts of debt
B. High leverage increases the break-even point of the firm
C. Projected cash flows are often subject to significant error limiting the ability of the firm to repay its debt
D. A and B only
E. A, B, and C
查看答案
Fraudulent conveyance is best described by which of the following situations:
A new company spun off by its parent to the parent's shareholders that enters bankruptcy is found to have been substantially undercapitalized when created
B. An acquiring company pays too high a price for a target firm
C. A company takes on too much debt
D. A leveraged buyout is taken public when its operating cash flows are increasing
E. None of the above
Which of the following are commonly used sources of funding for leveraged buyouts?
A. a. Secured debt
B. Unsecured debt
C. Preferred stock
D. Seller financing
E. All of the above
Which of the following is generally not considered a characteristic of a financial buyer?
A. Focus on short-to-intermediate returns
B. Concentrate on actions that enhance the ability of target firm’s ability to generate cash flow to satisfy debt service requirements
C. Intend to own the business for very long periods of time
D. Manage the business to maximize return to equity investors
E. All of the above
Which of the following is not true about attractive LBO candidates?
A. Most assets tend to be encumbered
B. Have low leverage
C. Have predictable cash flow
D. Have assets that are not critical to the ongoing operation of the firm
E. Are in mature, moderately growing industries
微信支付 
支付宝支付