FUNDAMENTAL OF CORPORATE FINANCE
FUNDAMENTAL OF CORPORATE FINANCE
4th Edition
ISBN: 9781323942925
Author: Berk
Publisher: PEARSON
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Chapter 17, Problem 12CC
Summary Introduction

Spin-off dividend: Spinoff is a special noncash dividend distribution by a firm to the shareholders. When in a transaction firm distributes shares of a subsidiary it called for a spin-off the dividend.

Spin-off: When the shares of existing company are sold for the creation of the new independent company, it is called as a spinoff. The company that decides for the spinoff is called as the parent company.

To determine:

The advantages of spin-off dividend as opposed to selling the division and distributing the cash.

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