A leveraged buyout (LBO) takes place when the purchase price of a firm is financed largely with debt financial capital. Group of answer choices True False

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A leveraged buyout (LBO) takes place when the purchase price of a firm is financed largely with debt financial capital. Group of answer choices True False

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Tundexigo Tundexigo · Answer 1

It is true that the leveraged buyout takes place when the purchase price of a firm is financed largely with debt financial capital.

Leveraged buyout refers to an acquisition of another firm with a significant amount of borrowed money to meet the acquisition cost.

In short, Leveraged buyout means use of borrowed money to acquire a firm.

In conclusion, It is true that the leveraged buyout takes place when the purchase price of a firm is financed largely with debt financial capital.