1.How can event study methods be used to test for a diversification discount? 2. What are some factors that might determine whether a firm engages in (1) an asset sale, (2) an equity carve-out, or (3)...

1.How can event study methods be used to test for a diversification discount? 2. What are some factors that might determine whether a firm engages in (1) an asset sale, (2) an equity carve-out, or (3) a spin-off? 3. Pick an asset sale reported in Table A3.What were the advantages of the sale of the assets for the divesting parent? What were the advantages to the buying firm?