In 2005, Toys "R" Us was taken private in a leveraged buyout by a group of private equity firms. The LBO appears to be a powerful but risky tool. Can you discuss the effects of LBO on the capital structure of the firm and some of the risk factures created or amplified by the LBO?

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A leveraged buyout LBO can have significant effects on the capital structure of a firm Here are some key points to consider Effects on Capital Structu... View the full answer