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

Author Message
Director
Joined: 13 Nov 2003
Posts: 958

Kudos [?]: 174 [0], given: 0

Location: Florida

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05 Jan 2004, 22:30
00:00

Difficulty:

(N/A)

Question Stats:

33% (01:21) correct 67% (00:42) wrong based on 5 sessions

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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 companyтАЩs earnings and to profit richly by the later resale of the companies or their divisions.

(A) by using the companyтАЩs earnings and to profit
(B) by using the companiesтАЩ earnings and by profiting
(C) using the companiesтАЩ earnings and profiting
(D) with the companyтАЩs earnings, profiting
(E) with the companiesтАЩ earnings and to profit

Kudos [?]: 174 [0], given: 0

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4285

Kudos [?]: 528 [0], given: 0

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05 Jan 2004, 22:46
E keeps the parrallellism - to pay off and to profit
it is also better to say pay off the debts with, instead of paying off the debt using
_________________

Best Regards,

Paul

Kudos [?]: 528 [0], given: 0

Manager
Joined: 09 Jun 2003
Posts: 187

Kudos [?]: 57 [0], given: 0

Location: work chair

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06 Jan 2004, 01:36
dj wrote:
In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the companyтАЩs earnings and to profit richly by the later resale of the companies or their divisions.
(A) by using the companyтАЩs earnings and to profit
(B) by using the companiesтАЩ earnings and by profiting
(C) using the companiesтАЩ earnings and profiting
(D) with the companyтАЩs earnings, profiting
(E) with the companiesтАЩ earnings and to profit

paul, you are smart man! first i voted for c, then i saw hoping to profit, not hoping profiting... any idea whether it is the right choice?

Kudos [?]: 57 [0], given: 0

Director
Joined: 13 Nov 2003
Posts: 958

Kudos [?]: 174 [0], given: 0

Location: Florida

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06 Jan 2004, 07:41
Paul wrote:
E keeps the parrallellism - to pay off and to profit
it is also better to say pay off the debts with, instead of paying off the debt using

I was cranked between "by using" and "with".

Thanks. ans is E

Kudos [?]: 174 [0], given: 0

06 Jan 2004, 07:41
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