Question

Which strategy issues new debt within a company and takes the proceeds from the debt issuance...

Which strategy issues new debt within a company and takes the proceeds from the debt issuance to buy back some of the outstanding shares?

A- Nationalization

B- Leveraged buyouts

C- Leveraged recapitalization

D- Reorganization

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Answer #1

Answer is option b)  Leveraged buyouts

Leveraged buyouts refers to purchase of a controlling share in a company by its management using outside capital.

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