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:

Kolb's Models

Theoretical frameworks by David Kolb that describe the experiential learning cycle, involving concrete experience, reflective observation, abstract conceptualization, and active experimentation.

Fleming's Models

Educational models describing different learning styles, typically including visual, auditory, reading/writing-preference, and kinesthetic modalities.

Learning Styles

Refers to the theory that individuals have preferential ways of absorbing, processing, and retaining information, including visual, auditory, reading/writing, and kinesthetic modes.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behavior, preferences, and interactions with others.