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How is PIK subordinated bonds treated in a LBO transaction? A: Treated as non-cash interest expense and added back to cash flow from operating activities

How is PIK subordinated bonds treated in a LBO transaction?

A: Treated as non-cash interest expense and added back to cash flow from operating activities on the statement of cash flows

B: Treated as cash interest expense, but not included in the cash flow from operations in the statement of cash flows

C: Treated as cash interest expense

D: Added back to cash flow from financing activities on the cash flow statement

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