Question: When a firm spins off a unit, it q , creates new shares of stock representing the unit and distributes them to its existing shareholders.

When a firm spins off a unit, it
q,
creates new shares of stock representing the unit and distributes them to its existing shareholders.
sells shares of the unit through an IPO to raise capital and repay debt.
allows an underwriter to underprice its shares in an IPO in exchange for future business.
sells the unit to an acquirer.
When a firm spins off a unit, it q , creates new

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