Going-private transaction in which a large percentage of the money used to buy the outstanding stock is borrowed is called a:
A) Tender offer.
B) Proxy contest.
C) Merger.
D) Leveraged buyout.
E) Consolidation.

Question

Quizplus · Accepted Answer

A leveraged buyout (LBO) is a financial transaction in which a company is purchased primarily with borrowed funds, often by taking out loans or issuing bonds, with the assets of the company being acquired often used as collateral for the loans.

Going-Private Transaction in Which a Large Percentage of the Money