All else constant, a leveraged buyout will usually result in:

Name: All else constant, a leveraged buyout will usually result in:
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Question

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A leveraged buyout typically involves the use of significant amounts of debt to finance the purchase of a company, which increases the company's financial leverage. This, in turn, increases the Degree of Financial Leverage (DFL) because the company now has more debt relative to equity, making its earnings more sensitive to changes in operating income.

All Else Constant, a Leveraged Buyout Will Usually Result In