Which of the following statements about equity carve-outs is true?
I. An equity carve-out is the sale of a minority equity interest in a subsidiary of 20% or less.
II. A purpose of equity carve-outs is to raise equity capital without risking loss of control.
III. Popular myth would have one believe that carve-outs increase share price and the equity capital base without sacrificing control.

Question

Quizplus · Accepted Answer

An equity carve-out is the sale of a minority equity interest in a subsidiary of 20% or less. A purpose of equity carve-outs is to raise equity capital without risking loss of control. Popular myth would have one believe that carve-outs increase share price and the equity capital base without sacrificing control.

Which of the Following Statements About Equity Carve-Outs Is True