Herman Counts the Number of Times It Takes to Rehearse

question 114

Multiple Choice

Herman counts the number of times it takes to rehearse a list of nonsense syllables in order to memorize it. Then he counts the number of times it takes to relearn the list after a month has passed. Herman then calculates the difference between the number of times and determines the percentage gain he made between the two efforts at memorization. Herman uses this figure as a measure of memory retention. Which technique is Herman using?

• A)Savings method
• B)Mnemonics technique
• C)Long-term potentiation
• D)Massed practice
• E)Free recall technique

---

Definitions:

Bankruptcy Cost

The expenses and financial losses associated with going through bankruptcy, including legal fees, lost business, and detrimental effects on creditworthiness.

Interest Tax Shield

A lowered income tax obligation stemming from approved deductions on interest expenses.

Levered Firm

A company that uses debt (loans or bonds) in addition to equity in its financing structure, often leading to higher risk and potentially higher returns.

M&M Proposition I

A theory in corporate finance suggesting that in a perfect market, the value of a firm is unaffected by how it is financed, regardless of the debt-to-equity ratio.