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Author Question: Which of the following is an advantage of a spin-off versus selling a subsidiary and distributing the cash? (Read 198 times)

tfester

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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
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Marked as best answer by tfester on Jul 9, 2019

momo1250

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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.
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tfester

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Reply 2 on: Jul 9, 2019
Great answer, keep it coming :)

bulacsom

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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