Continuing with the PJR Situation.
An LBO means that the take over
company borrows an enormous amount
of Money (often by issuing & speculative
unk bonds, and uses those borrowd
funds to buy back the common stock.
After the take-over, which of the
following would be the best indicator
that this has happened
a.) Quick ratio
b. ACP, Average Collection period
CU) TIE Times Interest earned
di) Net Profit
Margin
