Quiz Ch 32 – Spin-Off Distribution Methods
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
In a spin-off, which is a common method of distributing shares of the new company?
In a spin-off, which is a common method of distributing shares of the new company?
Which set does NOT represent an example of spin-offs?
Which statement about spin-offs and carve-outs is inaccurate?
True or false: Private-equity ownership exhibits a reduced dependency on internal capital markets, distinguishing it from conglomerates.
True or false: Carve-outs and spin-offs are indistinguishable from each other.
True or false: Within private-equity partnerships, the general partners predominantly invest capital and, in return, receive a management fee and a carried interest in the fund’s profits.
True or false: A spin-off involves crafting a new and independent entity by divesting certain assets from a parent company and selling them to new investors.
True or false: In the reorganization of significant public companies, the Securities and Exchange Commission (SEC) assumes a pivotal role by ensuring the disclosure of relevant information to creditors before they vote on the proposed plan.
True or false: The government emerges as a major beneficiary in privatization as it receives revenues from the sale.
True or false: Junk bonds are a common source of financing for Leveraged Buyouts (LBOs).