A leveraged buyout involves a high level of _____ financing.
A) debt
B) equity
C) strategic
D) unsecured

Question

Quizplus · Accepted Answer

A leveraged buyout (LBO) involves a high level of debt financing, typically using borrowed funds to purchase a company and then using the assets of the acquired company to repay the debt. The goal of an LBO is to maximize the return on investment for the investors using leverage, meaning a higher level of debt in relation to equity.

A Leveraged Buyout Involves a High Level of _____ Financing