Why may a separated high-growth unit get a higher multiple?
AFreed from slow units
BIt pays no tax at all
CA state subsidy applies
DIt stops filing reports
Answer & Solution
Correct answer: A. Freed from slow units
Once separated from slow divisions, the market can value the growth business on its own prospects.
Keep practising Corporate Spin-Off
Browse all Corporate Spin-Off questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
What do the new SEC rules adopted in 2024 require SPAC filings to display prominently?Compared with an IPO, a SPAC route requires what?A SPAC listing is called the poor man's version of what?What right do SPAC investors have at merger?Which SPAC debuted on the Hong Kong exchange on March 18, 2022?In which year did SPAC IPOs peak with 613 IPOs raising about USD 162 billion?SPAC shares redeemable at USD 10 averaged USD 3.85 post-merger. About what fall is that?Under which SEC form is a SPAC public offering typically filed?