What is the minimum value of firm t

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Firm T has expected operating losses of $50 million and expects to be declaring bankruptcy at the end of the year. Firm A, with a tax rate of 40%, has before-tax earnings of $200 million. Firm A initiates an acquisition of Firm T with the intention of an ultimate liquidation. From Firm A's point of view, what is the minimum value of Firm T?

Reference no: EM132696024

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