The timing of a divestiture is important. If the business to be sold is highly cyclical, the sale should be timed to coincide with the firm's peak year earnings.

Name: The timing of a divestiture is important. If the business to be sold is highly cyclical, the sale should be timed to coincide with the firm's peak year earnings.
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Question

Quizplus · Accepted Answer

Timing a divestiture to coincide with peak year earnings of a highly cyclical business can result in a higher sale price and better return for shareholders.

The Timing of a Divestiture Is Important