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Employee Stock Ownership Plans (ESOPs) Are Useful Instruments for Financing

Question 23

Multiple Choice

Employee Stock Ownership Plans (ESOPs) are useful instruments for financing leveraged buyouts because in an ESOP transaction


A) employees have a greater voice in the final decision
B) lenders can offer below market interest rates
C) ESOPs can be used only when employees take over management functions
D) ESOPs attract greater external equity investments

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