Question: 12.How is it possible that a firm can create value by selling a business unit? Select one:a. If the business is unprofitable, selling it will
12.How is it possible that a firm can create value by selling a business unit?
Select one:a. If the business is unprofitable, selling it will increase earnings per share.b. If the business uses the proceeds to repurchase stocks, reverse dilution occurs and market values increase.c. It is not possible. Business lost is value lost.d. If the business unit has a negative NPV with respect to its market value, shareholders are wealthier with the market value than they are with the future cashflows.
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