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True or False a. One of the first task of an LBO?s




True or False;a. One of the first task of an LBO?s financial manager is to pay down debt?;b. Once an LBO or MBO goes private, it almost always stays private.;c. Targets for LBOs in the 1980 tended to profitable companies in mature industries.;d. ?Carried interest? refers to the deferral of interest payments on LBO debt.;e. By 2008 new LBO and private-equity transactions were extremely rare.;f. The announcement of a spinoff is generally followed by a sharp fall in the stock prices;g. Privatizations are generally followed by massive layoffs;h. On average, privatization seems to improve efficiency and add value.;j. When a company becomes bankrupt, it is usually in the interest of stockholders to seek a liquidation rater than a reorganization.;k. A reorganization plan must be presented for a approval by each class of creditor;l. In a reorganization, creditors may be paid off the mixture of cash and securities.;m. When a company is liquidated, one of the most valuable assets to be sold off is the tax loss carry forward.


Paper#33632 | Written in 18-Jul-2015

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