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Title: Which of the following is an advantage of a spin-off versus selling a subsidiary and distributing the cash? Post by: Biraj on Jul 7, 2019 Which of the following is an advantage of a spin-off versus selling a subsidiary and distributing the cash?
▸ Increases the transaction costs associated with selling the subsidiary. ▸ The spin-off is not taxed as a cash distribution. ▸ Shareholders must immediately pay capital gains taxes versus ordinary income taxes on the value of the spin-off. ▸ A spin-off guarantees a lower cost of capital. Title: Which of the following is an advantage of a spin-off versus selling a subsidiary and distributing the cash? Post by: katiewill on Jul 7, 2019 Content hidden
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