If Company X intends to distribute shares of its wholly owned subsidiary to its current shareholders in an effort to make the subsidiary a publicly traded company,then Company X is contemplating a(n)

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Company X is considering a spin-off, which involves distributing shares of a subsidiary to current shareholders in order to create a new publicly traded company. Equity carve-outs involve selling partial ownership of a subsidiary to outside investors, and LBOs involve acquiring a company through a significant amount of debt financing.

If Company X Intends to Distribute Shares of Its Wholly