What Is the Average Market Reaction to a Takeover Announcement

question 40

Multiple Choice

What is the average market reaction to a takeover announcement?

• A)The price of the target increases by 15%,while the price of the acquirer decreases by 1%.
• B)The price of the target increases by 15%,while the price of the acquirer increases by 1%.
• C)The price of the target and acquirer both increase by 15%.
• D)The price of the target increases by 1%,while the price of the acquirer increases by 15%.

Understand the initial impact of a payroll tax on firms' costs and workers' take-home pay.

Identify the changes in employment levels resulting from the imposition of a payroll tax.

Analyze how a payroll tax affects the per-hour equilibrium wage paid by firms.

Calculate the total tax collections from a payroll tax.

---

Definitions:

Transtheoretical Model

A theory of behavior change that outlines six stages of change individuals go through when modifying behavior.

Contemplation Stage

A phase in the Transtheoretical Model of behavior change where individuals are thinking about changing a behavior but have not yet taken action.

Seriously Quitting

The sincere intent and subsequent action to permanently stop engaging in a harmful behavior, such as smoking or drinking alcohol.

Behavioral Theory

A framework that explains how behaviors are learned and maintained through interactions with the environment, including reinforcements and punishments.