LBO capital structures are often very complex, consisting of bank debt, subordinated unsecured debt, preferred stock, and common equity.

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Quizplus · Accepted Answer

This statement is true. LBO capital structures are typically complex and may involve multiple layers of debt and equity, including bank debt, subordinated debt, preferred stock, and common equity. The specific structure will vary depending on the size of the deal, the industry, and the strategy of the private equity investors.

LBO Capital Structures Are Often Very Complex, Consisting of Bank