LBOs Often Exhibit Very High Financial Returns During the Years

LBOs often exhibit very high financial returns during the years following their creation. Which of the following best describes why this might occur?

A) LBOs invariably improve the firm's operating efficiency
B) LBOs tend to increase investment in plant and equipment
C) The only LBOs that are taken public are those that have been the most successful
D) LBOs experience improved decision making during the post-buyout period
E) None of the above

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