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Question 5 (1 point) ABC Co. has accumulated net operating losses of $80 million and is likely to enter bankruptcy. The XYZ, Inc has earnings
Question 5 (1 point) ABC Co. has accumulated net operating losses of $80 million and is likely to enter bankruptcy. The XYZ, Inc has earnings of $200 million and is in the 36% marginal tax bracket. XYZ, Inc is considering buying ABC Co. and liquidating the company and retaining a few of the assets. What is the minimum value of ABC Co. to XYZ, Inc? O $25.2 million 0 $43.2 million O $80.0 million $28.8 million $51.2 million
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