which is NOT a benefit of debt financing from the acquirer’s perspective. A. EPS accretion B. Lower cost of capital C. Return on equity D. Lack of covenants
Question
Solution 1
The option that is NOT a benefit of debt financing from the acquirer’s perspective is D. Lack of covenants.
Here's why:
A. EPS accretion: This is a benefit because if the earnings per share (EPS) increases post-acquisition, it means the acquisition is adding value to the shareholders' equity.
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Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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Knowee AI is a powerful AI-powered study tool designed to help you to solve study problem.
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