Question
A company pays a dividend on common stock, thereby reducing its cash balances. What effect does payment of the dividend have on its leverage ratio
A company pays a dividend on common stock, thereby reducing its cash balances. What effect does payment of the dividend have on its leverage ratio and net profit margin?
a.
Increases debt/equity; no effect on net profit/sales
b.
Decreases debt /equity; decreases net profit/sales
c.
Decreases debt/equity; increases net profit/sales
d.
No effect on debt/equity; decreases net profit/sales
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Valuing Agile The Financial Management Of Agile Projects
Authors: Alan Moran
1st Edition
0117082880, 9780117082885
