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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: 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 show answer in excel and state necessary assumptions, if any). Particulars XYZ ABC Particulars XYZ ABC Fixed Assets 0 200000 6% Debenture 1800000 0 Cash 1,19,115 15,00,000 Out. Salaries 10,000 3,575 Accounts receivable 1,62,500 1,00,000 Accumulated Depreciation 2,50,000 48,050 Store equipment 2,15,000 0 Accounts payable 60,000 1,18,180 Prepaid insurance 38,250 50,000 Notes payable 70,000 1,46,730 Closi
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