Which of the following statements accurately describe equity carve-outs?

Group of answer choices :

None of the other statements are correct.

The parent company maintains a significant ownership in the new entity.

More than one of the other statements are correct.

The parent company does not receive cash from the shares sold in the new entity.

It can eventually lead to a spin-off.

QWhich of the following statements accurately describe the imputation tax system?

Group of answer choices

It is designed to prevent double taxation.

It is a common taxation system throughout the world.

None of the other statements are correct.

More than one of the other statements are correct.

It incentivizes firms to keep retain franking credits for future use.

Q Pinder Ltd operates under the classical tax system. Pinder Ltd has a taxable income of $4761 and its tax rate is 26%. Pinder Ltd pays all of its net income as dividends. If the average personal tax rate on dividend income is 48%, what is the total dividend income tax paid by Pinder Ltds shareholders? (round to the nearest two decimal places)

Group of answer choices

$2041.97

$1528.20

None of the other answers.

$1691.11

$1475.02

Q Pinder Ltd has announced a cash offer to acquire Value Co. Pinder Ltds shares are trading at $16 and there are 4 million shares of outstanding. Value Cos shares are trading at $4 and there are 1 million shares outstanding. Pinder Ltd estimates that the acquisition will incur integration costs of $270,000 per year for the first three years. Pinder Ltd expects to be able to reduce overlapping capital expenditures by $750,000 during the first five years of the acquisition. The required rate of return for Pinder Ltd is 10%. Assume cash flows occur at the end of each year. Based only on the information above, what is the maximum price Pinder Ltd can offer before destroying shareholder value? (round to the nearest two decimal places)

Group of answer choices

$5.83

$5.88

$6.06

$6.17

None of the other answers.