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 Grummans 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 anti-takeover 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 Grummans share price.