Which of the following are corporate takeovers financed by large amounts of borrowed money?
A) liquidity corporations
B) financed mergers
C) debt acquisitions
D) leveraged buyouts

Question

Quizplus · Accepted Answer

Leveraged buyouts are corporate takeovers that are financed by large amounts of borrowed money, often through the issuance of bonds or loans. This allows the acquiring company to purchase a controlling stake in the target company using a relatively small amount of equity, with the bulk of the purchase price being funded by debt. This strategy can be risky, as it leaves the acquiring company highly leveraged and susceptible to changes in interest rates or economic conditions.

Which of the Following Are Corporate Takeovers Financed by Large