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The Following Question Relates to PQR,which Has the Following Ratios

Question 50

Multiple Choice

The following question relates to PQR,which has the following ratios: return on assets, (ROA) 10 per cent;return on equity (ROE) 12 per cent;and current ratio (CR) of 1.8:1.
-A company declares and pays a final dividend.The effect of this transaction is to:


A) decrease CR,but not affect ROA and ROE.
B) decrease CR,but increase ROA and ROE.
C) decrease CR,increase ROA,and not affect ROE.
D) have no effect.

Correct Answer:

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