Bidding for hertz-leveraged buyout

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Read the case "Bidding for Hertz: Leveraged Buyout." Then do the next question.

The CCM bidding group1 plans to increase the amount of debt in Hertz capital structure from $9.7 billion to $12.5 billion. Is Hertz a good candidate for a high level of debt? Why or why not?

I am looking for a qualitative answer based on the tradeoffs that we discussed in class. An ideal answer will provide arguments that suggest that Hertz might be a good candidate as well as arguments that suggest that Hertz may not be a good candidate. Then you should
form your opinion.

Reference no: EM133056779

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