Research by Auerbach and Poterba and by Altshuler and Auerbach on tax loss carry forwards indicate that the following tax-related factor may offset the otherwise full value of the target's losses:

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The correct answer is C) Expiration. The research indicates that the value of the target's losses may not be fully realized if the losses expire before they can be utilized by the acquiring company. Tax loss carryforwards have a limited time frame in which they can be applied, and if not used within this period, they expire, thus potentially offsetting their full value.