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Basic Question 9 of 16

Here are some guidelines for spotting potential LBO candidates, EXCEPT FOR:

A. Low leverage.
B. High P/E multiple.
C. High, stable free cash flow.

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

explain features of private equity and its investment characteristics

CFA® 2024 Level I Curriculum, Volume 5, Module 3.