Answer :
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.
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