1. Speculate as to why Northrop Grumman used a spin-off rather than a divestiture, a split-off, or a split up to separate Huntington Ingalls from the rest of its operations. What were the advantages of the spin-off over the other restructuring strategies?

2. What is the likely impact of the spin-off on Northrop Grumman's share price immediately following the spin-off of Huntington Ingalls, assuming no other factors offset it?

3. Why do businesses that have been spun off from their parent often immediately put antitakeover defenses in place?

4. Why would the U.S. Internal Revenue Service be concerned about a change of control of the spun-off business?

5. Describe how you as an analyst would estimate the potential impact of the HII spin-off on the long-term value of Northrop Grumman's share price.