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M&M Proposition 1: If Dynamo Wishes to Change Its Capital

question 3

Multiple Choice

M&M Proposition 1: If Dynamo wishes to change its capital structure from 75 percent to 60 percent equity and use the debt proceeds to pay a special dividend to shareholders, how much debt should they issue?

Identify the characteristics and differences between various types of negotiable instruments (checks, drafts, promissory notes, certificates of deposit).

Recognize the legal effect of electronic processing of checks under the Check 21 Act.

Comprehend the roles and responsibilities of parties involved in negotiable instruments (drawer, drawee, payee, holder in due course).

Distinguish between bearer and order instruments and their implications for transferability and payment.

Definitions:

Behavior Modification

The use of empirically demonstrated techniques to improve behavior by altering environmental variables related to the behavior.

Operant Conditioning

The practice of influencing a behavior's intensity by granting rewards or imposing punishments.

Token Economies

A behavior modification method that uses tokens as a form of reinforcement for desirable behavior, which can later be exchanged for rewards.

Insight Learning

A cognitive process whereby an individual suddenly comes to understand a problem or conceptualize a solution without the need for trial-and-error behavior.