Mergers That Attempt to Bootstrap Earnings May Obtain Increased Current

question 1

Multiple Choice

Mergers that attempt to bootstrap earnings may obtain increased current earnings per share at the expense of:

• A) a higher price-earnings ratio.
• B) higher total combined market value.
• C) reduced future growth prospects.
• D) increased free cash flow.

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Definitions:

Variable-interval

In operant conditioning, a reinforcement schedule in which a response is rewarded after an unpredictable amount of time has passed.

Fixed-ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses.

Variable-ratio

A schedule of reinforcement where a response is rewarded after an unpredictable number of responses, making it a powerful maintenance strategy.

Conditioned Reinforcer

A stimulus that has acquired the capacity to strengthen desirable behavior through its association with a primary reinforcer.