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 in...

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A company pays a dividend on common stock, thereby reducing its cash balances. What effect does payment

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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?

Increases debt/equity; no effect on net profit/sales

Decreases debt /equity; decreases net profit/sales

Decreases debt/equity; increases net profit/sales

No effect on debt/equity; decreases net profit/sales

Posted Date: Jul 11, 2024 04:28 AM

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A company pays a dividend on common stock, thereby reducing its cash balances. What effect does payment

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