The company has the following ratios: Debt to Equity (DTE) ratio 1.8:1, Return on asset (ROA) 10 per cent; and Quick ratio (QR) of 1:1. In the current financial year, the company revalued a piece of land from $4 million to $5 million (the land is revalued for the first time).

How does the revaluation in the current financial year affect the ratios?

Select one:

a. decrease ROA and DTE but have no effect on QR.

b. no effect on these three ratios

c. increase ROA and DTE but decrease QR.

d. decrease QR but have no effect on ROA or DTE.

e. decrease ROA and QR but have no effect on DTE.