Question
In a leveraged buyout (LBO), what is the primary source
of funds used for the acquisition of a company?Solution
As the name suggests, the primary source of funds used to finance the acquisition of a company in a LBO is debt. The acquiring company uses a significant amount of debt to finance the acquisition, with the intention of using the cash flows from the target company to pay down the debt.
A company's shares with a face value of Rs. 10 each are quoted at Rs. 60 in the stock market. Current rate of dividend is 6% and this is expected to gro...
Under RBI’s KYC Directions, which category of bank account is permitted to be opened with simplified documentation (relaxed KYC norms), subject to res...
Section 24(b) of the Income Tax Act refers to:
A company has a paid-up share capital of ₹80 lakh and free reserves of ₹120 lakh. It plans to buy back 25% of its paid-up equity shares. The face va...
A company has achieved total sales of ₹10,00,000 during the year. The variable costs incurred amount to ₹6,00,000, while the fixed costs are ₹2,50...
Any decrease in the bank balance is recorded on ______ side of Cash Book and in _______ Column of Pass Book.
A Private Company can raise funds in how many ways _____________________
What is the primary purpose of GSTR-1 in the GST (Goods and Services Tax) system?
Receivables Velocity/average collection period of the company?
The amount of depreciation goes on declining every year, in case of:
