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Part A Explain the reasons why a company might decide to divest (sell) an asset by means of an Equity Spin-Off and an Equity Carveout.

Part A Explain the reasons why a company might decide to divest (sell) an asset by means of an Equity Spin-Off and an Equity Carveout. [10 marks]

Part B Based on information in the case, what benefits did General Electric expect to see from the equity sale option (Project Beacon) and what risks do you see with such an approach? [15 marks]

General Electric After the Crisis

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