What effect does declaration and payment of cash dividend have on total liabilities and debt to equity ratio?
Sunday, March 29th, 2009
Ann asked:
A. No effect on total liabilities, increase in debt to equity ratio
B.Increase in total liablities, increase in debt to equity ratio
C.No effect on total liabilities, decrease in debt to equity ratio
D.Decrease in total liabilities, decrease in debt to equity ratio
A. No effect on total liabilities, increase in debt to equity ratio
B.Increase in total liablities, increase in debt to equity ratio
C.No effect on total liabilities, decrease in debt to equity ratio
D.Decrease in total liabilities, decrease in debt to equity ratio
My answer is D. That is correct? I know B is not an answere.
Roland