Which of the following are commonly used sources of funding for leveraged buyouts?
A) Secured debt
B) Unsecured debt
C) Preferred stock
D) Seller financing
E) All of the above

Question

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Leveraged buyouts often utilize a variety of funding sources to finance the purchase. These can include secured debt (loans backed by assets), unsecured debt (loans not backed by specific assets), preferred stock (a type of equity that has priority over common stock in dividend payments), and seller financing (where the seller extends credit to the buyer). Each of these sources offers different advantages and risks, making them collectively common in structuring the financing of leveraged buyouts.

Which of the Following Are Commonly Used Sources of Funding