CC11-1 (Static) Accounting for Equity Financing [LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5] [The following information applies to the questions displayed below.] Nicole has been financing Nicole's Getaway Spa (NGS) using equity financing. Currently NGS has authorized 100,000 nopar preferred shares and 200,000$2 par common shares. Outstanding shares include 50,000 preferred shares and 40,000 common shares. Recently the following transactions have taken place. a. NGS issues 1,000 preferred shares for $12 a share. b. NGS repurchases 1,000 common shares for $11 a share. c. On November 12 , the board of directors declares a $0.10 cash dividend on each outstanding preferred share. d. The dividend is paid December 20 . CC11-1 (Static) Part 4 4. How would each transaction affect the ROE ratio? (Use + for increase, - for decrease, and NE for no effect.)