Which of the following scenarios best exemplifies a leveraged buyout of a microchip manufacturer, Rigoletto Inc.?
A) The owner of another company buys all the outstanding shares of Rigoletto in order to take it private.
B) A private equity firm, Stormcloud Inc., buys a large number of shares of Rigoletto in order to publicly trade it under a new name.
C) Rigoletto sells all its shares and declares bankruptcy.
D) Rigoletto buys back a large amount of its own shares from the stock market.
Correct Answer:
Verified
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