单选题

Firms with which of the following characteristics are most likely candidates for a management buyout (MBO)?

A、 High dividend payout ratios
B、 Large amounts of overvalued assets and low debt levels
C、 Large amounts of undervalued assets and high levels of cash flow

【正确答案】 C

【答案解析】

Companies with large amounts of undervalued assets (which can be sold to reduce debt) and which generate high levels of cash flow (which is used to make interest and principal payments on the debt) are likely candidates for MBO transactions.