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b) Explain cultural issues in takeovers. c) Firm A acquires Firm B. As of date Firm B has accumulated losses of Rs. 1,000 lakh.
b) Explain cultural issues in takeovers. c) Firm A acquires Firm B. As of date Firm B has accumulated losses of Rs. 1,000 lakh. Firm A is well managed company with a good profit record. The projected profits before taxes, of Firm A, for the next three years are given in the table: Year 1 23 Amount (Rs.) 350 500 700 Assuming corporate tax rate of 35 per cent and discount rate of 12 per cent, determine the present value of tax gains likely to accrue on account of merger to A. M
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