Assume That You Own 2500 Shares of Omicron Stock and That

question 78

Multiple Choice

Assume that you own 2500 shares of Omicron stock and that Omicron uses the entire $50 million to pay a special dividend.Suppose you are unhappy with Omicron's decision and would prefer that Omicron used the excess cash to repurchase shares.The number of shares that you would have to buy in order to undo the special cash dividend that Omicron paid is closest to:

• A)125
• B)275
• C)250
• D)310
• E)200

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Definitions:

Null Hypothesis

A hypothesis in statistical analysis that suggests no significant difference or effect.

Uniformly Distributed

Describes a type of probability distribution in which all outcomes are equally likely over a certain interval.

Level Of Significance

A threshold in statistical hypothesis testing that determines when to reject the null hypothesis, commonly denoted as alpha (α).

Tenure Track

An academic employment path leading to tenure, a permanent position that provides job security and freedom from routine evaluations.