Question 1

What is a leveraged buyout?

Accepted Answer

A leveraged buyout (LBO)is the takeover ...

Question 2

Most privatizations resemble

Accepted Answer

A)  spin-offs.
B)  carve-outs.
C)  LBOs.
D)  both spin-offs and carve-outs.

Question 3

Describe the main differences between private-equity partnerships and public conglomerates.

Accepted Answer

Both private-equity partnerships and pub...

Question 4

LBOs are typically financed with junk bonds.

Accepted Answer

A) True 
 B)False

Question 5

Asset sales:
I.are perceived as good news for investors of the selling firm;
II.generally result in the assets being employed more productively after the sale;
III.transfer business units to companies that can manage them more efficiently;

Accepted Answer

A)  I only
B)  I and II only
C)  II and III only
D)  I, II, and III

Question 6

The following are examples of LBOs EXCEPT:

Accepted Answer

A)  KKR and RJR Nabisco.
B)  Motorola and Motorola Mobility.
C)  JAB and Keurig Green Mountain.
D)  Carlyle Group and Veritas.

Question 7

In 1991 RJR:

Accepted Answer

A)  reverted to being a public company.
B)  went bankrupt because of the high debt burden.
C)  carved-out the stake held by KKR.
D)  all of these options are correct.

Question 8

Briefly explain the difference between a spin-off and a carve-out.

Accepted Answer

Carve-outs are similar to spin-offs, exc...

Question 9

The following are examples of spin-offs except:

Accepted Answer

A)  Motorola and Motorola Mobility.
B)  eBay and PayPal.
C)  Altria and Kraft Foods.
D)  Apollo Management and ADT.

Question 10

Private-equity partnerships are designed to run portfolio companies indefinitely.

Accepted Answer

A) True 
 B)False

Exam 32: Corporate Restructuring

The following are examples of LBOs EXCEPT:

Correct Answer
verified

Private-equity partnerships are designed to run portfolio companies indefinitely.

Correct Answer
verified

Describe the main differences between private-equity partnerships and public conglomerates.

Correct Answer
verified
Both private-equity partnerships and pub...
View Answer

LBOs are typically financed with junk bonds.

Correct Answer
verified

What is a leveraged buyout?

Correct Answer
verified
A leveraged buyout (LBO)is the takeover ...
View Answer

Briefly explain the difference between a spin-off and a carve-out.

Correct Answer
verified
Carve-outs are similar to spin-offs, exc...
View Answer

Most privatizations resemble

Correct Answer
verified

The following are examples of spin-offs except:

Correct Answer
verified

In 1991 RJR:

Correct Answer
verified

Asset sales: I.are perceived as good news for investors of the selling firm; II.generally result in the assets being employed more productively after the sale; III.transfer business units to companies that can manage them more efficiently;

Correct Answer
verified

Exam 32: Corporate Restructuring

The following are examples of LBOs EXCEPT:

Correct AnswerverifiedShow Answer

Private-equity partnerships are designed to run portfolio companies indefinitely.

Correct AnswerverifiedShow Answer

Describe the main differences between private-equity partnerships and public conglomerates.

Correct AnswerverifiedBoth private-equity partnerships and pub...View AnswerShow Answer

LBOs are typically financed with junk bonds.

Correct AnswerverifiedShow Answer

What is a leveraged buyout?

Correct AnswerverifiedA leveraged buyout (LBO)is the takeover ...View AnswerShow Answer

Briefly explain the difference between a spin-off and a carve-out.

Correct AnswerverifiedCarve-outs are similar to spin-offs, exc...View AnswerShow Answer

Most privatizations resemble

Correct AnswerverifiedShow Answer

The following are examples of spin-offs except:

Correct AnswerverifiedShow Answer

In 1991 RJR:

Correct AnswerverifiedShow Answer

Asset sales: I.are perceived as good news for investors of the selling firm; II.generally result in the assets being employed more productively after the sale; III.transfer business units to companies that can manage them more efficiently;

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Both private-equity partnerships and pub...
View Answer

Correct Answer
verified

Correct Answer
verified
A leveraged buyout (LBO)is the takeover ...
View Answer

Correct Answer
verified
Carve-outs are similar to spin-offs, exc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified