CTP · Question #397
(Topic 4) Company XYZ is a high technology company. It is planning on acquiring another company in the high technology sector. Company XYZ does not have enough cash to acquire the company and is…
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Question
- (Topic 4)
Company XYZ is a high technology company. It is planning on acquiring another company in the high technology sector. Company XYZ does not have enough cash to acquire the company and is planning on financing the acquisition through a bond offering. Which of the following measures is company XYZ MOST LIKELY to use in its analysis of operating profits considering it is a high debt transaction?
Options
- ALong-term debt to capital
- BEBITDA margin
- CNet profit margin
- DReturn on equity
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