Delta Products Has Decided to Spin Off One of Its

question 33

Essay

Delta Products has decided to spin off one of its subsidiaries,Gamma Technologies.Each Delta shareholder will receive 0.125 shares of Gamma for each share of Delta they own.Delta's price is $35.00 cum-dividend and immediately after the spin-off Gamma Technologies was trading for $24.00 per share.In a perfect capital market,what would Delta Product's ex-dividend share price be after this transaction?

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Definitions:

Authority Compliance Behaviors

Actions characterized by a focus on efficiency, control, and achieving tasks while maintaining strict adherence to rules and hierarchy.

Country Club Behaviors

Leadership behaviors that prioritize the needs and well-being of team members, sometimes at the expense of productive task performance.

Team Behaviors

Actions or dynamics exhibited by a group working together towards a common goal.

Relationship Behaviors

Actions taken by individuals that affect the nature and quality of their interactions and connections with others.