Question
Which of the following statements correctly describes aspects of spin-off transactions as we discussed in lectures? a) They always involve all shares in the newly
Which of the following statements correctly describes aspects of spin-off transactions
as we discussed in lectures?
a) They always involve all shares in the newly listed entity being directly held by
shareholders in the original firm that conducted the spin-off.
b) A spin-off transaction would never follow an equity carve-out transaction.
c) A spin-off may allow the market to better value two business segments that have quite
different growth prospects and/or capital expenditure requirements.
d) None of the above statements are correct.
e) More than one of the above statements are correct.
Can you please explain the why the statements might be wrong? Thank you
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