10 Financial Management.Autumn 2001 Figure I.Total Market Value of Parent Relative to Parent's Holdings in Internet Subsidiary This figure shows the total value of the parent(total liabilities plus market value of equity)relative to the total value of the parent's holdings in the subsidiary (debt owed the parent plus the market value of the shares retained by the parent).After the spin-off effective date,the subsidiary holdings value is calculated as if the parent maintained the pre-spin-off shares.For the total parent value,the value after the spin-off effective date sums both the total value of the parent and the value of the distributed shares. Panel A.dELiA*s and its holdlings in iTurf 0.9 0.8 0.7 Subsidiary Holdings 0.6 0.5 Total Parent Value 0.4 0.3 Parent A nnounces 0.2 Reverse Spin-Of Parent Files S. 01 .0 Panel B.Daisvtek and its holdings in PFSWeh 0.7 0.6 05 Total Parent Value D Parent A nnounces Spin.O!f suolll!as 0.4 0.3 Parent Files S-1 Sp in-OIf Effeetive Suhsid iary Holdin g 0.2 0.1 0.0