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:

Process Focused

An approach concentrating on the optimization and efficiency of processes to achieve better quality, cost, and delivery metrics.

Leader-Sensitive Projects

Projects that are significantly influenced by the leadership style and capabilities of the project manager.

Type of Organization

Refers to the classification of organizations based on their purposes, structures, and functionality such as nonprofits, corporations, and governmental entities.

Organized

The state or condition of being systematically arranged, especially for efficient planning and execution.