Use the Following Information to Answer the Question(s)below

question 71

Multiple Choice

Use the following information to answer the question(s) below.
Really Big Conglomerate (RBC) is considering acquiring POP,Inc.a smaller unsuccessful Internet firm.POP has outstanding tax loss carry forwards of $320 million from losses over the past six years.RBC has pre-tax income of $100 million per year,a cost of capital of 10%,and pays 35% in taxes.
-If RBC acquires POP,in what year will RBC be required to pay corporate taxes again?

• A)2 years
• B)3 years
• C)4 years
• D)5 years

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Definitions:

Minorities

Demographic groups within a society that are smaller in number and often have different ethnic, racial, religious, or cultural identities than the majority.

Biases

Inclinations or prejudices for or against one person or group, especially in a way considered to be unfair.

U.S. Bureau of Labor Statistics

A federal agency that collects and analyzes essential economic information related to labor market activity, working conditions, and price changes in the economy.

American Companies

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