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    Fundamentals of Corporate Finance Study Set 12
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    Exam 17: Payout Policy
  5. Question
    Why Might a Firm Choose a Spinoff Instead of Selling
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Why Might a Firm Choose a Spinoff Instead of Selling

Question 15

Question 15

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Why might a firm choose a spinoff instead of selling a division and distributing the cash?

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A spinoff avoids the transacti...

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