CFA Practice Question

There are 78 practice questions for this topic.

CFA Practice Question

Which statement(s) is (are) true?

I. Private equity firms may be able to raise more debt than public companies.
II. The higher the agency cost in an investment, the more value a PE firm can add to it.
Correct Answer: Both are true.

User Contributed Comments 1

User Comment
vi2009 for II, the higher the agency cost, the more value a PE firm can add value to the firm by aligning management and investors objectives.
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