Which of the following correctly describes the effect of Mogul Company declaring and distributing a 10% common stock dividend?
A)Mogul's current ratio decreased.
B)Mogul's return on equity ratio decreased.
C)Mogul's debt-to-equity ratio remained the same.
D)Mogul's return on assets decreaseD.Stock dividends do not affect debt or total stockholders' equity.Therefore, the debt-to-equity ratio remained the same.

Question

Quizplus · Accepted Answer

Stock dividends do not affect debt or total stockholders' equity. Therefore, the debt-to-equity ratio remained the same.

Which of the Following Correctly Describes the Effect of Mogul