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:

Prototypes

Original or first models of something from which other forms are copied or developed, often used in the context of designs, technology, or cognition.

Divergent Thinking

The cognitive process of thinking about multiple solutions to a problem, often associated with creativity.

Mirror-Recognition

The ability of an individual to recognize themselves in a mirror, indicating self-awareness.

Mental Categories

The organization of knowledge in the mind into groups or classes based on shared characteristics or attributes.