Question
The three key sources of value in a typical leverage buyout are leverage, operational improvements, and multiple expansion. Which statement is false? All else
The three key sources of value in a typical leverage buyout are leverage, operational improvements, and multiple expansion. Which statement is false? All else equal, higher revenue growth always increases the IRR and the NPV of the leverage buyout. All else equal, higher leverage always increases the NPV of the buyout. All statements are true. All else equal, lower exit multiple always decreases the IRR of the buyout.
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Essentials Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
11th Edition
1265414963, 978-1265414962
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