Examlex
Given the following information, leverage will add how much value to the unlevered firm per pound of debt?
Corporate tax rate: 34%
Personal tax rate on income from bonds: 20%
Personal tax rate on income from shares: 50%
Disinhibitory Effect
Describes the phenomenon where observing a model being rewarded for a prohibited or inhibited behavior increases the likelihood of the observer engaging in that behavior.
Classical Conditioning
A habituation procedure where two stimuli are paired frequently, and a reaction that initially occurs because of the second stimulus subsequently occurs due to the first stimulus exclusively.
Cognitive Map
A mental representation of one’s physical environment, facilitating navigation and understanding of spatial relationships.
Observational Learning
Learning that occurs through observing the behavior of others, also known as social learning or modeling.
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