CFA Practice Question

There are 139 practice questions for this study session.

CFA Practice Question

In a typical leveraged buyout deal, which component often provides the largest amount of capital?

A. Equity.
B. Bank loans.
C. High yield bonds.
Explanation: Bank loans (leveraged loans) often provide more capital than either equity or high yield bonds. They tend to be higher on the capital structure than high yield bonds, meaning that in the event of default leveraged loans will pay out before HY Debt.

User Contributed Comments 2

User Comment
tylaw Um...this might only be true in CFA land.
jnptrsn1 CFA land XDD
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