The DAB Corp

question 24

Multiple Choice

The DAB Corp.has unfortunately accumulated net operating losses of $70 million and is likely to go bankrupt.The CLC Corp.has earnings of $200 million and is in the 36% marginal tax bracket.CLC is considering buying DAB and liquidating the company and retaining a few of the assets.What is the minimum value of DAB to CLC?

• A)$25.2 million
• B)$70.0 million
• C)$72.0 million
• D)There is insufficient information provided.

Recognize the techniques for involving employees in organizational change processes.

Comprehend the importance of communication and involvement in successful organizational change.

Understand examples and types of incremental and radical changes within organizations.

Describe the role of HR metrics and evaluation in organizational performance.

---

Definitions:

Equilibrium Quantity

The quantity of a good or service at which supply equals demand, resulting in no net surplus or shortage in the market.

Ironing Boards

Flat, foldable boards used as a stable surface for ironing clothes and linens.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at a particular price level, reaching a state of market balance.

Equilibrium Price

The economic value where the quantity of goods brought to the market equals the quantity taken by consumers.