Which of the Following Statements Is True

question 83

Multiple Choice

Which of the following statements is true?

• A) When a firm performs a spin-off the total stock value of the parent firm should drop by approximately the market value of the new public spin-off.
• B) A reverse LBO is also known as a second IPO.
• C) Tracking stocks are designed to track the earnings of wholly-owned subsidiaries.
• D) all of the above statements are true
• E) Only statements (a) and (c) are true.

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Definitions:

Correlation Coefficient

A statistical measure that indicates the extent to which two variables fluctuate together.

Relationship

Refers to a connection, whether emotional, social, or professional, that exists between individuals, groups, or entities, characterized by mutual interactions and dependence.

Variables

Elements, characteristics, or features that can change or vary in a research or experimental setting, influencing or reflecting the outcomes.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship.