Taylor's Hardware Is Acquiring the Corner Store for $20,000 in Cash

question 11

Multiple Choice

Taylor's Hardware is acquiring The Corner Store for $20,000 in cash. Taylor's has 1,500 shares of stock outstanding at a market value of $46 a share. The Corner Store has 2,200 shares of stock outstanding at a market price of $8 a share. Neither firm has any debt. The incremental value of the acquisition is $3,500. What is the value of Taylor's Hardware after the acquisition?

• A)$49,000
• B)$50,300
• C)$67,300
• D)$70,100
• E)$72,400

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Definitions:

Evaluative Conditioning

A process where the qualities of one stimulus become attributed to another through association.

Classical Conditioning

An educational process where two stimuli are consistently paired together, resulting in a response initially triggered by the second stimulus ultimately being triggered by just the first stimulus.

Advertising Techniques

Strategies and methods used by companies and marketers to promote and sell their products, services, or ideas to consumers.

Classical Conditioning

An educational technique involving the repeated pairing of two stimuli, where the reaction initially caused by the second stimulus is ultimately prompted by only the first stimulus.