The following are advantages of spin-offs:
I.They widen investor choice by allowing them to invest in just one part of the business.
II.They can improve incentives for managers.
III.By spinning off businesses with "poor fit," parent firms can concentrate on their core businesses.
IV.They relieve investors of the worry that funds will be siphoned off from one business to support unprofitable capital investments in another.
A) I and II only
B) I, II, and III only
C) I, II, III, and IV
D) III and IV only
Correct Answer:
Verified
Q1: The largest gainers from LBO transactions have
Q2: The following are examples of LBOs EXCEPT:
A)BC
Q4: In carve-out transactions:
A)shares of the new company
Q5: Leveraged restructurings are designed to force mature,
Q6: The gains from LBOs typically derive from
A)tax
Q7: Junk bonds are bonds that
A)have ratings above
Q8: In the case of the RJR Nabisco
Q9: Leveraged buyouts (LBOs)almost always involve which of
Q10: Spin-offs are not taxed if the shareholders
Q11: The main characteristic(s)of LBOs is (are)
A)high debt.
B)private
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