BL Timber Stock Sells for $48 a Share

question 59

Multiple Choice

BL Timber stock sells for $48 a share.The firm has a rights offer outstanding for new equity shares.Lisa is a current stockholder and owns 350 shares.She just received one right for every share she owns.To purchase one new share she must submit four rights and $40.What is the value of one right?

• A)$1.80
• B)$1.60
• C)$.91
• D)$1.33
• E)$1.46

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Definitions:

Behavior Modification

A therapeutic approach designed to change specific undesirable behaviors using reinforcement principles.

Classical Conditioning

The method of instruction where a response is learned by associating a stimulus from the environment with one that occurs naturally.

Unconditioned Stimulus (US)

A stimulus that naturally triggers a response without any prior learning or conditioning.

Conditioned Stimulus (CS)

An initially neutral stimulus that, after being linked with an unconditioned stimulus, comes to elicit a conditioned response over time.