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Explain how the threat of a leveraged buyout or a takeover can actually address the problem...

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Finance

Explain how the threat of a leveraged buyout or a takeover canactually address the problem of moral hazard.

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Leveraged buyout involves acquisition or purchase of a company through borrowed funds which are a mix of debt and equity One thing which makes leveraged buyout distinct is that borrowed funds are used for acquisition instead of own funds Most of the    See Answer
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Explain how the threat of a leveraged buyout or a takeover canactually address the problem of moral hazard.

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