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Question 173/279

Company XYZ is a high technology company. It is planning on acquiring another company in the high technology sector. Company XYZ does not have enough cash to acquire the company and is planning on financing the acquisition through a bond offering. Which of the following measures is company XYZ MOST LIKELY to use in its analysis of operating profits considering it is a high debt transaction?

A. EBITDA margin

B. Long-term debt to capital

C. Net profit margin

D. Return on equity

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Question 173/279

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