- CFA Exams
- CFA Exam: Level II 2021
- Study Session 8. Corporate Finance (2)
- Reading 23. Mergers and Acquisitions
- Subject 10. Corporate restructuring
CFA Practice Question
Which restructuring method results in an inflow of cash to the parent company?
B. Spin-off.
C. Split-off.
A. Equity carve-out.
B. Spin-off.
C. Split-off.
Correct Answer: A
User Contributed Comments 4
| User | Comment |
|---|---|
| lortola | what about spin-off? the Cie separate part od its business, sell-it to the Mket and so receive part of the cash for the spun-off Cie. |
| rise10 | they don't receive cash in spin off - given to S/H |
| gregsob2 | agree with rise |
| evanfitz | Yes, in a spin-off, shareholders receive shares in the new subsidiary. In a carveout, cash is generated from sale of shares to the public. |