All Else Equal, a Normal Stock Split or a Stock

question 19

Multiple Choice

All else equal, a normal stock split or a stock dividend:

• A) results in a significant increase in the per share price of the stock.
• B) reduces the profits earned by a firm.
• C) increases the number of shares of stock outstanding.
• D) should not be recognized on the balance sheet of a corporation.
• E) increases the dividend per share.

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Definitions:

Common Causes

Factors that consistently contribute to a process's variation under normal conditions, as opposed to special causes that are sporadic.

Control Limits

Statistical boundaries in process control systems that indicate the maximum and minimum values a process should operate within to maintain quality control.

P-chart

A P-chart is a type of control chart used in statistical quality control to monitor the proportion of defective items in a series of samples and determine whether a process is in control.

Process Output

The final product, result, or service generated by completing a specific process.