Goodday & Sons Is Being Acquired by Baker for £19,000

question 43

Multiple Choice

Goodday & Sons is being acquired by Baker for £19,000 worth of Baker equity.Baker has 1,500 shares of equity outstanding at a price of £25 a share.Goodday has 1,000 shares outstanding with
A market value of £16 a share.The incremental value of the acquisition is £2,000.How many new
Shares of equity will be issued to complete this acquisition?

• A)760.0 shares
• B)840.0 shares
• C)960.0 shares
• D)1,187.5 shares
• E)1,312.5 shares

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Definitions:

Rorschach Inkblot Test

A psychological test in which individuals' perceptions of inkblots are analyzed to evaluate their personality and emotional functioning.

Ambiguous Inkblots

Visual stimuli used in psychological tests (e.g., Rorschach test) that are open to interpretation and are used to uncover a person's unconscious thoughts.

Psychological Test

A standardized measure of a sample of a person’s behavior, used to assess and evaluate diverse mental functions and characteristics.

Mental Status Examination

The most frequently used semi-structured interview in psychiatric settings. Screens for patients’ emotional, intellectual, and neurological functioning. Used in formal diagnosis or to plan treatment.