Start learning →

Which kind of target do private equity firms prefer for an LBO?

AOne with stable cash flows
BOne with erratic cash flows
COne with very high fixed costs
DOne with heavy existing debt
Answer & Solution
Correct answer: A. One with stable cash flows
Stable cash flows are needed to pay interest and repay principal over time.
Practise this question with Quill — CA Final →

Keep practising Corporate Spin-Off

Browse all Corporate Spin-Off questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Corporate Spin-Off lesson →
Related questions