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ABC Co. Ltd. is planning to acquire XYZ Co. Ltd. Following are the balance-sheet of both companies for year 2022-23: If ABC Ltd. does not

ABC Co. Ltd. is planning to acquire XYZ Co. Ltd. Following are the balance-sheet of both companies for year 2022-23:

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If ABC Ltd. does not want its debt-equity ratio to be more than 1:3 and they need to pay off XYZ Ltd.s shareholder bi-annually in next five years, would you recommend them to use leveraged buyout if company can acquire loan @7% p.a.? (Kindly state necessary assumptions, if any).

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