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Suppose that Disney spun off all the assets of ABC Radio and that, following the spin-off, Citadel merged with the spun-off entity in a pure

Suppose that Disney spun off all the assets of ABC Radio and that, following the spin-off, Citadel merged with the spun-off entity in a pure stock for stock swap (368 B reorganization). Assume that Disney did not extract any cash from ABC Radio prior to the spin-off. What fraction of the combined ABC-Citadel entity would Disney shareholders own upon completion of the deal?

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