The following question relates to PQR, which has the following ratios: return on assets, (ROA) 12 per cent; return on equity (ROE) 15 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.

Question

Quizplus · Accepted Answer

The Answer of The following question relates to PQR, which has the following ratios: return on assets, (ROA) 12 per cent; return on equity (ROE) 15 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.

The Following Question Relates to PQR, Which Has the Following