Leveraged buyouts (LBOs)almost always involve:
I.a large part of the purchase price is financed by debt;
II.most of the issued debt is below investment grade (i.e.,junk);
III.the firm goes private and its shares are no longer traded on the open market
A)I only
B)II only
C)I and II only
D)I,II,and III

Question

Quizplus · Accepted Answer

Leveraged buyouts (LBOs) typically involve high amounts of debt to finance the purchase price, including a significant portion of junk bonds (below investment grade). The firm being acquired also goes private, which means its shares are no longer traded on the open market. Therefore, all three statements I, II and III are usually true for LBOs.

Leveraged Buyouts (LBOs)almost Always Involve