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# In a leveraged buyout, investors borrow huge sums of money

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Intern
Joined: 25 Feb 2005
Posts: 42

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02 Apr 2005, 23:57
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In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the companyâ€™s earnings and to profit richly by the later resale of the companies or their divisions.
(A) by using the companyâ€™s earnings and to profit
(B) by using the companiesâ€™ earnings and by profiting
(C) using the companiesâ€™ earnings and profiting
(D) with the companyâ€™s earnings, profiting
(E) with the companiesâ€™ earnings and to profit

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Director
Joined: 01 Feb 2003
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03 Apr 2005, 01:28
Will go with E
(not able to provide any reasoning!)

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Manager
Joined: 07 Mar 2005
Posts: 178

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03 Apr 2005, 01:40
[quote="scorer"]In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt [u]by using the companyâ€™s earnings and to profit [/u]richly by the later resale of the companies or their divisions.
(A) by using the companyâ€™s earnings and to profit
(B) by using the companiesâ€™ earnings and by profiting
(C) using the companiesâ€™ earnings and profiting
(D) with the companyâ€™s earnings, profiting
(E) with the companiesâ€™ earnings and to profit[/quote]

B,C,D are out becuse the sentence say hoping to pay ,,,,hoping to profit,,,,,,,thus profiting is wrong
ok im up with A and E,
A is out becuse it says company's which mean just 1 company!!!!!

thus E is best
_________________

i hate when people do'nt post the OA, it leaves in guessing!!!!

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VP
Joined: 25 Nov 2004
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03 Apr 2005, 06:10
(E) with the companiesâ€™ earnings and to profit

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Director
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03 Apr 2005, 08:48
Ca anyone explain why its isnt D?

whats the diff between companie's and companies' ?

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Intern
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03 Apr 2005, 09:45
gmat2me2 wrote:
Ca anyone explain why its isnt D?

whats the diff between companie's and companies' ?

OA is 'E' Can anyone explain why 'E'

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Intern
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03 Apr 2005, 22:39
it is using // feature

to pay.... is // to profit
companies' .... is // to sales of companies..

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GMAT Club Legend
Joined: 07 Jul 2004
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03 Apr 2005, 22:43
investor hope to pay off the debt and to profit.. is parallel. C and D are out.

hoping to pay off with the companie's earning is correct. 'by using' is not as concise.

E it is.

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Senior Manager
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04 Apr 2005, 15:53
dipaksingh wrote:
anyone tell me what is wrong in "A"

idiom. Pay off with something, not pay off using something.

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GMAT Club Legend
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04 Apr 2005, 18:42
OA ?

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04 Apr 2005, 18:42
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# In a leveraged buyout, investors borrow huge sums of money

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