In a leveraged buyout $($LBO$),$ a large amount of debt is used to finance the acquisition of a company. This strategy aims to:

a$)$ Reduce the overall risk of the target company.

b$)$ Increase the target company's dividend payout ratio.

c$)$ Increase the acquiring company's return on equity $($ROE$).$

d$)$ Improve the target company's credit rating.

finance questions