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All Other Things Being Equal, If a Company Increased Its

Question 40

Multiple Choice

All other things being equal, if a company increased its dividend payments, what would happen to the following ratios?  Sotal debt to equity  Times interest earned  Financial leverage ratio  A)   Increase  Same  Same  B)   Same  Same  Decrease  C)   Increase  Decrease  Decrease  D)   Same  Increase \begin{array} { l c c c } & \text { Sotal debt to equity } & \text { Times interest earned } & \text { Financial leverage ratio } \\\text { A) } & \text { Increase } & \text { Same } & \text { Same } \\\text { B) } & \text { Same } & \text { Same } & \text { Decrease } \\\text { C) }& \text { Increase } & \text { Decrease } & \text { Decrease } \\\text { D) } & \text { Same } & \text { Increase }\end{array}


A) Option A
B) Option B
C) Option C
D) Option D

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