ANSWER ALL MCQ AND NO NEED TO EXPLAIN THE ANSWER

17. A clothing store buys dresses and sells them for a higher price. It has no other variable costs, but it incurs fixed costs of salespeople and rent. If the number of dresses purchased and sold increases (assuming the purchase and sale prices do not change), the store's profit margin: a) increases b) decreases c) stays the same 18. The corona virus disaster has caused many companies to draw down massively from their bank credit lines. Assuming no change in interest rates, these companies will be paying: a) more in interest on their loans and less in fees on their credit lines b) more in both interest on their loans and in fees on their credit lines c) less in both interest on their loans and in fees on their credit lines d) less in interest on their loans and more in fees on their credit lines 19. A company uses its credit line to pay dividends in excess of profits. What are the results? Choose two H a) Owners' equity decreases b) Owners' equity increases c) Leverage ratio decreases d) Leverage ratio increase 20. Schmaltz Herring's revenue and costs are forecast to be unchanged this year from last. But the IRS has announced an increase in the corporate profits tax rate. If Schmaltz pays the same amount of dividends, its payout ratio will, compared to last year: a) not change b) be higher c) be lower 21. XYZ Company is considering issuing a bond and using the money to pay off an existing bank loan. How will this affect XYZ's leverage ratio compared to its existing situation? a) raises it b) lowers it c) does not change it