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Which of the Following Statements Is True

Question 89

Multiple Choice

Which of the following statements is true?


A) When a firm performs a spin-off the total stock value of the parent firm should drop by approximately the market value of the new public spin-off.
B) A reverse LBO is also known as a second IPO.
C) Tracking stocks are designed to track the earnings of wholly-owned subsidiaries.
D) all of the above statements are true
E) Only statements (a) and (c) are true.

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