This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is an advantage of a spin-off versus selling a subsidiary and distributing the cash? (Read 191 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
on: Jul 9, 2019
Which of the following is an advantage of a spin-off versus selling a subsidiary and distributing the cash?
◦ Increases the transaction costs associated with selling the subsidiary.
◦ The spin-off is not taxed as a cash distribution.
◦ Shareholders must immediately pay capital gains taxes versus ordinary income taxes on the value of the spin-off.
◦ A spin-off guarantees a lower cost of capital.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by tfester on Jul 9, 2019

momo1250

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


tfester

  • Member
  • Posts: 534
Reply 2 on: Jul 9, 2019
Wow, this really help

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Ancestral versus shared derived characters involving morphological traits. Ancestral versus shared derived characters involving morphological traits.
Ancestral versus shared derived characters involving a molecular trait. Ancestral versus shared derived characters involving a molecular trait.
Baby Gorilla versus Baby Human Baby Gorilla versus Baby Human
Bryan versus McKinley, 1896 Bryan versus McKinley, 1896
Individualism Versus Collectivism Individualism Versus Collectivism
Modern Armadillo versus a Fossil Glyptodon Modern Armadillo versus a Fossil Glyptodon
Video: Role of ATP in muscle movement

For a complete list of videos, visit our video library