Going-private transactions in which a large percentage of the money used to buy the outstanding equity is borrowed is called a:
A)tender offer.
B)proxy contest.
C)merger.
D)leveraged buyout.
E)consolidation.

Question

Quizplus · Accepted Answer

A leveraged buyout involves using borrowed funds to finance a large percentage of the purchase of outstanding equity in a going-private transaction. Tender offers and proxy contests are not necessarily leveraged, and mergers and consolidations may or may not involve going-private transactions or significant borrowing.

Going-Private Transactions in Which a Large Percentage of the Money