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The very high initial leverage in an LBO is: A. Excessive but PE funds are willing to bet that the firm can service it. B.

The very high initial leverage in an LBO is:

A. Excessive but PE funds are willing to bet that the firm can service it.

B. Designed to be maintained for the entire term of the PE funds investment in the firm.

C. Expected to be paid down to a more sustainable level as quickly as reasonably possible.

D. Inconsistent with prudent financial management.

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