Which of the Following Statements Seems Most Correct About a Firm

question 3

Multiple Choice

Which of the following statements seems most correct about a firm that has made a cash tender offer for two million shares of ABC Corp.at a price of $20, which is $6 higher than ABC's current value?

• A)The economic gain of the merger exceeds $40 million.
• B)The economic gain of the merger exceeds $28 million.
• C)The economic gain of the merger exceeds $12 million.
• D)The economic gain of the merger would be zero after accounting for merger cost.

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Definitions:

Psychiatry

The branch of medicine focused on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.

Psychology

The scientific study of the mind and behavior, encompassing a wide range of topics including cognitive processes, emotional and social dynamics.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.