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Step2247 [10]
3 years ago
9

A leveraged buyout (LBO) Multiple Choice is based on an expectation that the new private owners will not restructure the company

at any cost. requires the buyer to disclose financial statements of the company once it becomes private. forces shareholders to sell their shares at lower prices than the actual value. changes the ownership structure of a company from public to private.
Business
1 answer:
pochemuha3 years ago
3 0

Answer:

Changes the ownership structure of a company from public to private.

Explanation:

A leveraged buyout (LBO) is the acquisition of another company using a significant amount of borrowed money to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company.

It is known to change the ownership structure of a company from public to private.

This is because it isn't usually sanctioned by the target company. It is also seen as ironic in that a company's success, in terms of assets on the balance sheet, can be used against it as collateral by a hostile company.

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For the next 2 questions, use the financials of Acme Corporation. After adjusting revenue for accounts receivable and deferred r
Mekhanik [1.2K]

Answer: B. $892.1 million

Explanation:

The Revenue was $939,393 million

When calculating how much cash was generated any increase to the Accounts Receivables is removed from the revenue because it signifies that more sales were made on credit and so have not given the business cash yet.

Any increase in Deferred Revenue must be added because this is Cash that has been given to the business but for accrual purposes cannot be recognized yet. Bottomline however, the Cash has been received.

Increase in Receivables = 309,196 - 221,504

= $87,692 million

Increase in Deferred Revenue= 374,730 - 334,358

= $40,372 million

The Cash generated is therefore;

= 939,393 - 87,692 + 40,372

= $892,073

= $892.1 million

I have attached the Financial Statements of Acme Corporation.

6 0
3 years ago
The equilibrium price is: unstable because at this price the quantity demanded is less than the quantity supplied. stable becaus
Makovka662 [10]

Answer:

stable because at this price the quantity demanded equals the quantity supplied.

Explanation:

Price can be defined as the amount of money that is required to be paid by a buyer (customer) to a seller (producer) in order to acquire goods and services. Thus, it refers to the amount of money a customer or consumer buying goods and services are willing to pay for the goods and services being offered. The price of goods and services are primarily being set by the seller or service provider.

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Generally, the equilibrium price is generally said to be stable because at this price, the quantity of goods or services demanded is equal to the quantity of goods or services supplied to the consumers.

6 0
3 years ago
What’s the answer????
Artemon [7]
Economics I believe
8 0
3 years ago
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Which of the following represents the fixed costs associated with buying materials from Suppliers, not including the costs of ma
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Answer:

Carrying costs

Explanation:

Carrying costs are the costs associated with holding inventory including maintenance, building rent and utilities, storage space, and insurance.

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Charmagne, a mid-level manager at Propel Marketing Services, dreads December when performance reviews are due. She believes that
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(A) she's not consistent in her approach

Explanation:

Charmagne is not consistent in her aproach because she thinks that employees should do what is expected all year long but her evaluations are based on the most recent three month's performance. Her actions impact the overall system because she is only considering the most recent months and not the whole period and that can make a difference because taking just a small sample can make things look different from reality specially when talking about the performance of an employee. For example, a mistake that happened in the last three months can make a good employee look bad and several mistakes someone made in the months that are not considered can make a bad employee look good.

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