Alternative Investments - Alternative Investments Section 1
36. A company is least likely to be attractive as a leverage buyout target if:
- Option : A
- Explanation : A company is an attractive leverage buyout target if the perceived intrinsic value of the company exceeds the market value.
- Option : A
- Explanation : Early stage financing is provided to companies moving toward operation but before commercial production and sales have occurred.
- A
A trade sale can be conducted through an auction process or by private negotiation.
- B
An advantage of an initial public offering is that it can be conducted quickly.
- C
Under recapitalization, the private equity firm maintains control, but allows the private equity investor to extract money from the company.
- Option : B
- Explanation : A disadvantage of an initial public offering is that the lead times are long.
39. Which of the following is least likely to be a key reason for investing in real estate?
- Option : A
- Explanation : A concern for real estate is that it is subject to government regulations affecting what can be done to modify the existing property and how it can be transferred.
40. Collateralized mortgage obligations are most likely to be an example of:
