In early 2018, Jack in the Box completed its divestiture of whollyowned subsidiary Qdoba, to private investors for $305 million. CNBC.com reported the following statement attributed to Lenny Comma, CEO and chairman of Jack in the Box. For the past several months, we have worked closely with our financial advisors and evaluated various strategic alternatives with respect to Qdoba, including a sale or spin-off, as well as opportunities to refranchise company restaurants. Following the completion of this robust process, our Board of Directors has determined that the sale of Qdoba is the best alternative for enhancing shareholder value and is consistent with the Companys desire to transition to a less capital-intensive business model. a. From the facts provided, what sort of equity carveout does this seem to be? This appears to be:

a business closure, a distribution of shares to existing shareholders, a sell off, a spin off b. How the deal could enhance value for Jack in the Box shareholders. Free up the company's cash for more profitable investments, Increase cash for its shareholders to invest in other companies, Increase the company's cash through increase in restaurant revenue, The deal will do little to enhance value for the shareholders c. What effects will the Qdoba carveout have on Jack in the Boxs balance sheet and income statement? Increase assets and liabilities on balance sheet and increase revenues and expenses on the income statement, Increase assets and liabilities on balance sheet and reduce revenues and expenses on the income statement, Reduce assets and liabilities on balance sheet and increase revenues and expenses on the income statement, Reduce assets and liabilities on balance sheet and reduce revenues and expenses on the income statement, Result in no change to assets and liabilities on balance sheet and revenue and expenses on the income statement.