Quiz Ch 32 – T/F Reflection of “Privatization” in LBOs
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
True or false: A “privatization” mirrors the action of privatizing a company through an LBO.
True or false: A “privatization” mirrors the action of privatizing a company through an LBO.
True or false: Leveraged buyouts and acquisitions are synonymous.
True or false: As long as shareholders of the parent company receive at least 80 percent of the shares in the new company, spin-offs are not subject to taxation.
For spin-offs to be tax-free, what minimum percentage of shares in the new company must be given to shareholders of the parent company?
Which accurately describes limited partnerships?
What is a privatization?
What does the term “conglomerate discount” indicate?
What primarily characterizes leveraged restructurings?