In a pre-LBO model, what is the new line item "financing fees" under?
A)Long-term liabilities
B)Long-term assets
C)Short-term liabilities
D)Short-term assets

Question

Quizplus · Accepted Answer

Financing fees in a pre-LBO model are capitalized and recorded under long-term assets. They are considered as part of the cost of obtaining financing and are amortized over the life of the underlying debt.

In a Pre-LBO Model, What Is the New Line Item