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.

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Definitions:

Crosswalk

Marked points on a road where pedestrians have the right to safely cross, typically found at intersections.

Circulate Rumors

The act of spreading unverified or unofficial stories or information among a group of people, often leading to uncertainty or misinformation.

Collective

A term referring to a group of individuals who share or are motivated by at least one common issue or interest, or work together to achieve a common objective.

Intergroup Behavior

Intergroup behavior refers to interactions between members of different groups, influenced by their group affiliations, which can lead to conflict or cooperation.