Which of the following statements is most CORRECT?
A) Leveraged buyouts (LBOs) occur when a firm issues equity and uses the proceeds to take a firm public.
B) In a typical LBO, bondholders do well but shareholders see their value decline.
C) Firms are forbidden by law to sell any assets during the first five years following a leverage buyout.
D) LBOs are never backed by private equity firms.
E) LBOs typically use a lot of debt.
Correct Answer:
Verified
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