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The primary difference between an MBO and a leveraged recapitalization is: A. MBOs are more popular among shareholders. B. The depreciation tax shields are likely
The primary difference between an MBO and a leveraged recapitalization is:
A. MBOs are more popular among shareholders.
B. The depreciation tax shields are likely to be higher in a leveraged recapitalization.
C. Management is likely to end up with a higher proportion of ownership in an MBO.
D. Post-transaction, MBOs are likely to have more financial flexibility than leveraged recapitalizations.
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