Question

Which of the following is not true of a split-off?

a. A split-off is a variation of a spin-off

b. Parent company shareholders receive shares in a subsidiary in return for surrendering their parent company shares

c. Split-offs are best suited for disposing of a less than 100 percent investment stake in a subsidiary,

d. A split-off reduces the parent firms earnings per share.

e. The split-off reduces the pressure on the spun-off firms share price

Answer

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