Question
1)Unsecured, cash flow lending provided to finance an acquisition is often referred to as mezzanine financing. True False 2)Earn-outs tend to shift risk from the
1)Unsecured, "cash flow" lending provided to finance an acquisition is often referred to as "mezzanine financing".
True
False
2)Earn-outs tend to shift risk from the seller to the acquirer in that a higher price is paid only when the seller or acquired firm has met or exceeded certain performance criteria.
True
False
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
