A parent firm's decision to sell or to retain a subsidiary is often made by comparing the after-tax equity value of the subsidiary with the pre-tax and interest sale value of the business.

Question

Quizplus · Accepted Answer

A parent firm's decision to sell or retain a subsidiary is typically based on comparing the after-tax equity value of the subsidiary with the after-tax sale value of the business, not the pre-tax and interest sale value.

A Parent Firm's Decision to Sell or to Retain a Subsidiary