Question

Common exit strategies employed by private equity funds include _____ and _____. A. a sale to...

Common exit strategies employed by private equity funds include _____ and _____.

A. a sale to strategic buyer, a share repurchase
B. flipping; an IPO
C. a share repurchase; a straight refinancing
D. a sale to strategic buyer; an IPO
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Common exit strategies employed by private equity funds include _____ and _____

correct answer : D : a sale to strategic buyer , an IPO

explanation : Private equity funds wants to have best returns from their investment, if the markets are good, they can go for IPO & get best returns for their investment, so IPO is the first best exit strategy.

second is a sale to strategic buyer, This will not only give them quich exit but also good money in very quick time.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1.When a private equity (PE) sells a firm that it previously took private to another PE...
1.When a private equity (PE) sells a firm that it previously took private to another PE firm, this is an example of a(n): A. Initial public offering B. Sale to an Financial buyer C. Sale to a strategic buyer D. Non of the following 2. In an IPO, if your company wants to have more certainty about getting a certain amount of proceeds from the stock issuance, which method would you likely to choose A. Auction B. Firm commitment C....
A _____ allows firms quick access to funds without being slowed by the registration process required...
A _____ allows firms quick access to funds without being slowed by the registration process required by the SEC. Stock that has been issued as a result of an IPO or a secondary offering can be traded by investors in the _____. A. secondary market; private placement market B. primary market; private equity market C. shelf registration; secondary market D. share repurchase program; primary market
A _____ allows firms quick access to funds without being slowed by the registration process required...
A _____ allows firms quick access to funds without being slowed by the registration process required by the SEC. Stock that has been issued as a result of an IPO or a secondary offering can be traded by investors in the _____. A. secondary market; private placement market B. primary market; private equity market C. shelf registration; secondary market D. share repurchase program; primary market
Private pension funds are administered by Select one: a. Securities firms b. Mutual funds and insurance...
Private pension funds are administered by Select one: a. Securities firms b. Mutual funds and insurance companies c. Private equity firms d. Investment banks e. Hedge funds
A corporation that decides to issue stock for the first-time to the public engages in a(n)...
A corporation that decides to issue stock for the first-time to the public engages in a(n) _____. The firm will typically hire a(n) _____ to help develop a prospectus and determine an appropriate offer price for the shares. A. IPO: underwriter B. buyout-to-buyout deal; private equity firm C. straight refinancing; portfolio manager D. leveraged buyout; accountant
What type of client is Prime Services used by? Select one: a) Pension funds b) Private...
What type of client is Prime Services used by? Select one: a) Pension funds b) Private equity funds c) Hedge funds d) Insurance companies
37. Which of the following is not a private equity investing strategy? A. venture capital B....
37. Which of the following is not a private equity investing strategy? A. venture capital B. mezzanine financing C. distressed debt investing in start-up firms D. leveraged buyouts 38. Venture capitalists are always looking for viable business to invest in. In reviewing all the issues affecting profitability and realization of return, which of the following issues would be the most important? A. Professional background of the management team B. Key staff are “locked in” with non-computer algorithms C. Rate of...
A private equity firm has a partial ownership stake in an energy company. It proposes to...
A private equity firm has a partial ownership stake in an energy company. It proposes to acquire another partial stake in a rival energy company. If the private equity firm has voting rights on their boards of directors, what is likely to be the major concern? a. There are no competitive concerns raised by the acquisition b. The transfer of competitively sensitive information on the energy rivals could facilitate an anticompetitive agreement c. The private equity firm could influence strategic...
XYZ Co. is all equity financed. The equity consists of 1000 common shares with a market...
XYZ Co. is all equity financed. The equity consists of 1000 common shares with a market value of $10 per share. Management is considering three mutually exclusive uses of $1000 in cash that is not needed for working capital. What will be the market price of XYZ's common stock, the number of shares outstanding, and the value of the firm immediately after each of these alternatives? Ignore tax considerations. a) Pay a cash dividend of $1 per share. b) Use...
The firm is an all-equity firm with assets worth $512,000 and 64,000 shares outstanding. It plans...
The firm is an all-equity firm with assets worth $512,000 and 64,000 shares outstanding. It plans to borrow $120,000 and use these funds to repurchase shares. The firm’s marginal corporate tax is 21%, and it plans to keep its outstanding debt equal to $120,000 permanently. If the firm plan to repurchase shares at $9 per share, what is the expected per share value of equity for the leveraged firm? Please show your work. A) $8 per share B) $10.45 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT