How Would A Dividend Recap Impact The 3 Financial Statements In An Lb

1.	How Would A Dividend Recap Impact The 3 Financial Statements In An Lbo?
Answer» No changes to the Income Statement. On the Balance Sheet, Debt WOULD go up and SHAREHOLDERS' Equity would go down and they would CANCEL each other out so that everything REMAINED in balance. On the Cash Flow Statement, there would be no changes to Cash Flow from Operations or Investing, but under Financing the ADDITIONAL Debt raised would cancel out the Cash paid out to the investors, so Net Change in Cash would not change. No changes to the Income Statement. On the Balance Sheet, Debt would go up and Shareholders' Equity would go down and they would cancel each other out so that everything remained in balance. On the Cash Flow Statement, there would be no changes to Cash Flow from Operations or Investing, but under Financing the additional Debt raised would cancel out the Cash paid out to the investors, so Net Change in Cash would not change.

How Would A Dividend Recap Impact The 3 Financial Statements In An Lbo?

Answer»

No changes to the Income Statement. On the Balance Sheet, Debt WOULD go up and SHAREHOLDERS' Equity would go down and they would CANCEL each other out so that everything REMAINED in balance.

On the Cash Flow Statement, there would be no changes to Cash Flow from Operations or Investing, but under Financing the ADDITIONAL Debt raised would cancel out the Cash paid out to the investors, so Net Change in Cash would not change.

No changes to the Income Statement. On the Balance Sheet, Debt would go up and Shareholders' Equity would go down and they would cancel each other out so that everything remained in balance.

On the Cash Flow Statement, there would be no changes to Cash Flow from Operations or Investing, but under Financing the additional Debt raised would cancel out the Cash paid out to the investors, so Net Change in Cash would not change.

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