2. Individual transactions often have a significant impact on ratios. This problem will consider the direction of such an impact. [3 marks] Use I for increase, D for decrease, and N for no change. No. Transaction Interest Coverage Debt Debt/ Ratio Equity Ratio Ratio Purchase of buildings financed by D a. b. C. mortgage Sale of common stock. Repayment of long-term bank loan. Conversion of bonds to common stock outstanding. d. Declaration and payment of cash dividend. e. Declaration and distribution of stock dividend.