Which one(s) of the following statement is (are) correct?

I. A firms' shares are not traded publically after it underwent a leveraged buyout.

II. The management becomes the owner of the firm through a management buyout.

III. The underwriters will reduce their spread when they are sure of the demand for a new offering.

IV. The "Bootstrap Game" is played somewhat in defiance of traditional merger logic in that it stays in effect only until EPS are increased.

• A.

  I and IV

• B.

  I, II, and III

• C.

  I, III, and IV

• D.

  I and II