Multiple Choice
Matt Townsend owns a car dealership that is very profitable. Since he plans to retire in 5-10 years, Townsend has decided to retain ownership for now, but without continuing to grow the business. This change would also allow him to invest for retirement some of the cash that the business is now generating. Which of the following harvesting methods does this illustrate?
A) A delayed sellout
B) A strategy to release the firm's free cash flows to the owners
C) Offering stock to the public through an IPO
D) Issuing a private placement of stock
Correct Answer:
Verified
Correct Answer:
Verified
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