Answer quickly and correctly!

Determine the effect of the following scenario on the Return on Equity Ratio: "A company declares dividends to common shareholders in the current accounting period but will pay the dividends to the shareholders in the next accounting period." Deal ONLY with the facts provided in the scenario, and determine the direct effects of the scenario ONLY in the current period. Assume no effect on the market price of stock. Assume the Current Ratio prior to any scenario was 2:1. Return on Equity Ratio = Net Income / Average Stockholders' Equity O The effect of this scenario DECREASES the ratio result. o The effect of this scenario INCREASES the ratio result. O The effect of this scenario DOES NOT AFFECT the ratio result