Q 81

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

Multiple Choice