What is meant by investors being able "to undo" the effects of corporate restructuring? Investors:
A) repay their portion of the firm's debt.
B) purchase securities only in unlevered firms.
C) will pay more for unlevered shares.
D) borrow in their name and replicate the effects of restructuring.

Question

Quizplus · Accepted Answer

"Undoing" the effects of corporate restructuring typically involves taking on debt to replicate the changes made by the company. This can be achieved by borrowing in the investor's own name, rather than through the company, in order to achieve similar results.

What Is Meant by Investors Being Able "To Undo" the Effects