CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

Which restructuring method results in an inflow of cash to the parent company?

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.
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