Suppose that Disney spun off all the assets of ABC Radio and that, following the spin-off, Citadel merged with the spun-off entity in a pure stock for stock swap (368 "B" reorganization). Assume that Disney did not extract any cash from ABC Radio prior to the spin-off. What fraction of the combined ABC-Citadel entity would Disney shareholders own upon completion of the deal?

Answer rating: 100% (QA)

In a pure stockforstock swap 368 B reorganization where Disney receives only shares of Citadel in ex... View the full answer