
Ultimate access to all questions.
Which of the following statements about the acquisition of a target company with tax loss carryforwards is most accurate? If the acquirer is profitable:
A
its current tax rate will have no impact on the acquisition price.
B
the acquirer would theoretically be willing to pay more than another acquirer with a lower tax rate.
C
the acquirer would theoretically be willing to pay more than another acquirer with a higher tax rate.