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Which of the following statements are true? I. In a levered buyout, the debt-to-value ratio is usually kept constant right after the transaction takes place.
Which of the following statements are true?
I. In a levered buyout, the debt-to-value ratio is usually kept constant right after the transaction takes place.
II. After a management buyout takes place, we can expect the management's incentives to work hard to be quite strong.
III. The rise of bankruptcy is always negligible in a levered buyout
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