(Effect of transactions and economic events on ratios, LO 2, 3, 4, 5,6) Complete the following table by indicating whether the listed transactions or economic events would increase, decrease, or have no effect on the financial ratios listed.

Explain your reasoning and state any assumptions that you make.

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Ratio/amount before taking the transaction/ economic event into effect split. 1. Three-for-one stock 2. Payment of a cash dividend that was declared in the previous month. 3. Repurchase of common shares. 4. Issuance of preferred shares for cash. 5. Declaration of a property dividend. The property being distributed has a book value that is greater than its market value. Debt-to- equity Current Return on Basic earnings ratio ratio equity Return per share on assets 1.8:1 1.6 9.8% $1.82 6.5%