abhishekpandey2002 wrote:In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

(A) by using the company's earnings and to profit
(B) by using the companies' earnings and by profiting
(C) using the companies' earnings and profiting
(D) with the company's earnings, profiting
(E) with the companies' earnings and to profit

IMO: C

OA: E

abhishekpandey2002 wrote:In a leveraged buyout, investors borrow huge sums of money to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.

(A) by using the company's earnings and to profit
(B) by using the companies' earnings and by profiting
(C) using the companies' earnings and profiting
(D) with the company's earnings, profiting
(E) with the companies' earnings and to profit

In my opinion, this is the sentence where the meaning of sentence has to be understood before answering the question.

The 'investors hoping to sell and profit' not 'investors hoping to sell and profiting' is correct.

Thus, E.

OA Please and will be glad if any one can correct me, incase I am wrong.

Thanks .. by the time I was typing the message OA was posted.

Meanwhile, I think there is some logic to choose between 'using' and 'with'.

Can somebody elaborate on that?

bubbliiiiiiii wrote:Thanks .. by the time I was typing the message OA was posted.

Meanwhile, I think there is some logic to choose between 'using' and 'with'.

Can somebody elaborate on that?

I will pay you with money VS I will pay you by using money.

AIM GMAT wrote:

bubbliiiiiiii wrote:Thanks .. by the time I was typing the message OA was posted.

Meanwhile, I think there is some logic to choose between 'using' and 'with'.

Can somebody elaborate on that?

I will pay you with money VS I will pay you by using money.

Good example. It's an extra word (which the GMAT hates) and sometimes is less clear. Consider the more ambiguous:

I will repay you with money.
I will repay you by using money.
I will repay you by using my new lawn mower.

Here, "by using" is no longer interchangeable with "with" -- the object of "by using" may be the repayment, or the use itself may be the repayment.

Jim@Grockit wrote:

AIM GMAT wrote:

bubbliiiiiiii wrote:Thanks .. by the time I was typing the message OA was posted.

Meanwhile, I think there is some logic to choose between 'using' and 'with'.

Can somebody elaborate on that?

I will pay you with money VS I will pay you by using money.

Good example. It's an extra word (which the GMAT hates) and sometimes is less clear. Consider the more ambiguous:

I will repay you with money.
I will repay you by using money.
I will repay you by using my new lawn mower.

Here, "by using" is no longer interchangeable with "with" -- the object of "by using" may be the repayment, or the use itself may be the repayment.

@Jim I could not understand what you mean to say.

I am still confused between A and E,

Do you mean to say E is more precise than A?

Explanation:
The skeleton of the sentence:
Investors borrow to buy companies, hoping to pay off the debt by using the company's earnings and to profit richly by the later resale of the companies or their divisions.
The concept tested:
1. If the non-underlined part has PLURAL noun, the underlined part MUST have plural noun.
-->The non-underlined part has "companies". The other part of the sentence MUST have companies. A and D are eliminated for using "COMPANY's".
2. Hoping to pay off the debt with XX and to profit richly by YY.
-->Hoping to pay off ............and to profit.
3. Have some examples:
Situation:
Say for example, you owe $1000 to a person. He asked you to pay the money. You have money in your bank. Then you can say:
=> I will pay you with the money in bank.
You will NOT say:
I will pay you using the money in bank.
I will pay you by using the money in bank.
4. NOUN + VerbING:
Noun + VerbING: Verbing modifies the noun. In the option C "debt using" means what? It makes the sentence vague. C is out.
Now, come to the sentence:
B changes the meaning of the sentence by saying that .."investors are hoping to pay off debt.......by profiting".
Answer is E.

Answer IMO is (A).

Parallel - "hoping to pay off the debt by..... and to profit richly by...."

<hoping to blah blah and to blah blah>