(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 1. Issuance of common shares for cash. 2. Granting of stock options to employees. 3. Stock dividend. 4. Issuance of common shares in exchange for capital assets. 5. Declaration of a preferred stock dividend. 6. Declaration of a cash dividend. Debt-to- equity Current Return on Basic earnings Return ratio ratio equity 0.9:1 1.3 11.5% per share $3.42 on assets 7.1%