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Assume that you are Best Buy, the electronics retailer, and that you consider entering the hardware industry. You have been approached by i-bankers representing Zenith,

Assume that you are Best Buy, the electronics retailer, and that you consider entering the hardware industry. You have been approached by i-bankers representing Zenith, which has a reputable brand name, but is on the verge of bankruptcy, with net operating losses of $2B. If your tax rate is 36%, estimate the tax benefits from this acquisition.

a. $2B b. $720M c. $1.28B d.

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