Which of the Following Statements Is NOT Correct

question 50

Multiple Choice

Which of the following statements is NOT correct?

• A) After a 3-for-1 stock split, a company's price per share should fall, but the number of shares outstanding will rise.
• B) Investors can interpret a stock repurchase program as a signal that the firm's managers believe the stock is undervalued.
• C) Companies can repurchase shares to distribute large inflows of cash, say from the sale of a division, to stockholders without paying cash dividends.
• D) Stockholders pay no income tax on dividends if the dividends are used to purchase stock through a dividend reinvestment plan.
• E) Stock repurchases can be used by a firm as part of a plan to change its capital structure.

---

Definitions:

Right Route

Pertains to ensuring medications or treatments are administered through the correct pathway or method as per medical guidelines to ensure efficacy and safety.

Sentinel Event

A significant adverse event in a healthcare setting, indicating a need for immediate investigation and response to improve safety.

Omission or Commission

Actions of neglecting something that should be done (omission) or doing something that should not be done (commission), often leading to varying results or consequences.

Immediate Investigation

The prompt examination or inquiry into a situation or issue to swiftly gather facts or evidence.