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joja [24]
3 years ago
11

A leveraged buyout refers to a(n): a. action where the management of the firm and/or an external party buys all of the assets of

a business financed largely with equity. b. restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private. c. firm pursuing its core competencies by seeking to build a top management team that comes from a similar background. d. firm restructuring itself by selling off unrelated units of the company's portfolio.
Business
1 answer:
grigory [225]3 years ago
3 0

Answer:

a restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.

Explanation:

A leverage means taking a loan to consummate a deal. So a leveraged buyout is when an entity takes a loan in order to buy all the assets of a firm and take it private.

Leveraged buyout is practices by parties that do not have enough funds to purchase a company, but they see a high return of Investments over time.

So they take a loan to buyout the company in the hope that returns will eventually cover the loan taken

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An investor purchases a 12-year, $1,000 par value bond that pays semiannual interest of $40. If the semiannual market rate of in
marysya [2.9K]

Answer:

Value of the bond = $862.013

Explanation:

The value of the bond is the present value of the future cash receipts expected from the bond. The value is equal to present values of interest payment and the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of the bond can be worked out as follows:

Step 1

<em>Calculate the PV of Interest payment </em>

Present value of the interest payment

PV = Interest payment × (1- (1+r)^(-n))/r

Interest payment = $40

PV = 40 × (1 - (1.05)^(-12×2)/0.05)

= 40 × 13.7986

= 551.945

Step 2

<em>PV of redemption Value </em>

PV of RV = RV × (1+r)^(-n)

= 1000 × (1.05)^(-12×2)

= 310.067

Step 3

<em>Calculate Value of the bond  </em>

= 551.94567 + 310.067

=862.01

Value of the bond = $862.013

 

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3 years ago
What do you call the person behind the desk at a hotel?
o-na [289]
The person is called a hotel desk clerk
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1. The minimum age to receive a Class C drivers license is<br> A. 15<br> B. 16<br> C. 18
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Reserves decrease if the Federal Reserve?a. raises the discount rate or auctions more credit. b. raises the discount rate but no
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Answer:

D. lowers the discount rate but not if it auctions more credit

Explanation:

Discount rate adjustment and Federal Reserve's auction have the following effects on reserves.

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On the other hand, a <em>lower discount rate</em> encourages investment outflow into other jurisdictions with higher yields, <em>thus reducing reserves</em>.

Auction: <em>auctioning more credit</em> will result in the movement of investment flows into the Federal Reserve (<em>an increase in reserves</em>) as investors invest in auctions. Vice versa.

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One characteristic of a run-of-paper (ROP) advertising rate to a newspaper:____.
beks73 [17]

Answer:

a. is that the advertiser has no control over where the ad appears in the newspaper.

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Run-of-paper (ROP) is another term for advertisement in the newspaper. The main feature of this type of advertisement is that it costs very low and the ad can be placed anywhere on the paper.

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