There Are No Taxes

question 139

Multiple Choice

There are no taxes. EBIT is expected to be $2.5 million, but could be as high as $3.5 million if an economic expansion occurs, or as low as $2 million if a recession occurs. All values are market
Values.
How many shares are outstanding under the proposed capital structure?

• A) 100,000
• B) 200,000
• C) 300,000
• D) 400,000
• E) 500,000

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Definitions:

Operant Conditioning

A method of teaching in which behavior is altered through the application of rewards or consequences.

B.F. Skinner's View

The perspective of psychologist B.F. Skinner that emphasizes the importance of reinforcement and punishment in shaping behavior, known as behaviorism.

Reinforcement

In behavioral psychology, a concept where a behavior is strengthened or increased by following it with a positive stimulus or removing a negative one.

Overextension

The act of using a word, on the basis of some shared feature, to apply to a broader range of objects than is appropriate.