When substantial debt is used to finance acquisitions, firms with successful acquisitions:
A) seek financial slack.
B) avoid long-term investments
C) reduce the debt quickly.
D) restrict managerial discretion in the use of cash flow.

Question

Quizplus · Accepted Answer

Firms with successful acquisitions often aim to reduce the debt quickly to improve their financial stability and reduce interest expenses.

When Substantial Debt Is Used to Finance Acquisitions, Firms with Successful