All other things being equal, if a company issues a 1% stock dividend, what is the effect on the following ratios? Total debt Times interest Financial leverage to equity A. Increase earned ratio Increase B. Increase No effect Increase Increase C. Increase No effect No effect D. No effect No effect No effect Option A Option B Option C Option D

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
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All other things being equal, if a company issues a 1% stock dividend, what is the effect on the
following ratios?
Total debt
Times interest
Financial leverage
to equity
A. Increase
earned
ratio
Increase
B. Increase
No effect
Increase
Increase
C. Increase
No effect
No effect
D. No effect
No effect
No effect
Option A
Option B
Option C
Option D
Transcribed Image Text:All other things being equal, if a company issues a 1% stock dividend, what is the effect on the following ratios? Total debt Times interest Financial leverage to equity A. Increase earned ratio Increase B. Increase No effect Increase Increase C. Increase No effect No effect D. No effect No effect No effect Option A Option B Option C Option D
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