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A Leveraged Buyout (LBO) the Purchaser Needs a Great Amount

Question 74

Multiple Choice

A leveraged buyout (LBO) The purchaser needs a great amount of external funding since the personal financial resources needed to acquire the firm directly are frequently __________.


A) Profit from a long-term capital gain to the seller
B) limited
C) run the company more efficiently than the current owners
D) a long-term capital gain to the seller and a short-term tax saving for the buyer
E) None of the answers are correct.

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