Multiple Choice
Which of the following is not true of a divestiture?
A) May create cash infusion for the parent firm
B) Parent ceases to exist
C) Proceeds of sale taxable if returned to shareholders through a dividend or stock buyback
D) A new legal subsidiary may be created
E) B and C
Correct Answer:
Verified
Correct Answer:
Verified
Q72: Split-ups and spin-offs generally are taxable to
Q73: Step 1: Kraft creates a shell subsidiary
Q74: In either a public or private solicitation,
Q75: The timing of a divestiture is important.
Q76: Divestitures, spin-offs, equity carve-outs, split-ups, and bust-ups
Q78: The Warner Music Group is Sold
Q79: Baxter to Spin Off Heart Care Unit<br>Baxter
Q80: Tracking stocks may create internal operating conflicts
Q81: A disadvantage of a split-off is that
Q82: Restructuring actions may provide tax benefits that