If an investor buys a portion (X) of both the debt and equity of a levered firm, then his/her payoff is
A) (X) × (profits) .
B) (X) × (interest) .
C) (X) × (profits - interest) .
D) None of the options are correct.
Correct Answer:
Verified
Q2: For a levered firm,
A)as earnings before interest
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A)combining assets.
B)splitting up of
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