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3. (5 points) The balance sheet of XYZ Inc. is given below. Assume that all balance sheet items are expressed in terms of market values.

3. (5 points) The balance sheet of XYZ Inc. is given below. Assume that all balance sheet items are expressed in terms of market values. Assets Liabilities and Equities Cash $4,000 Debt $5,000 Non-Cash Current Assets 3,000 Equity 10,000 Long-term Assets 8,000 Total Assets $15,000 Total Liability +Equity $15,000 The company has decided to distribute $3,000 to shareholders. If the firm decides to pay a cash dividend, what impact will the cash dividend payment have on the market value of leverage ratio

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