Question: Please provide through explanations, thank you Corporations often restructure their capital and assets to improve the flow of capital and information and to add value

 Please provide through explanations, thank you Corporations often restructure their capital

Please provide through explanations, thank you

Corporations often restructure their capital and assets to improve the flow of capital and information and to add value to shareholder wealth. Restructuring often takes place through spin-offs, equity carve-outs, partial public offerings, and tracking stocks. Consider the following statement about equity carve-outs: Equity carve-outs lead to an increase in expenses, as the board of directors of the subsidiary must carefully monitor transactions between the parent company and the subsidiary to make certain that the subsidiary's new minority shareholders are not being exploited. Based on your understanding of equity carve-outs, is the statement above an advantage of equity carve-outs? Yes No

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