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DEF Stockholders Are Paid the Current Market Value of Their

question 12

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DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000. DEF stockholders are paid the current market value of their firm in the form of ABC stock. Both firms are 100% equity-financed. The total earnings of the combined firm are $77,000.   What is the total value of the merged firm? A)  $135,000 B)  $490,000 C)  $625,000 D)  $725,800 E)  $760,000 What is the total value of the merged firm?

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Definitions:

Reinforcement Principles

Psychological concepts that involve strengthening a behavior by providing a desirable consequence or removing an undesirable one.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.

White Rats

Laboratory rats, often of the albino variety, used in research and experiments.

Classical Conditioning

In this learning approach, two stimuli are repeatedly linked, and a reaction that starts out being caused by the second stimulus is in time caused by just the first stimulus.

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