To Decide If a Business Is Worth More to the Shareholder

question 13

Multiple Choice

To decide if a business is worth more to the shareholder if sold, the parent firm generally considers all of the following factors except for

• A) The after-tax cash flows of the business to be sold
• B) The after-tax sale value of the business to be sold
• C) The parent's cost of capital
• D) A and B
• E) A, B, and C

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