All other things being equal, if a company issues a 1% stock dividend, what is the effect on the following ratios? $$\begin{array} { c c c c }
& \text { Increase } & \text { Times interest earned } & \text { Financial leverage ratio } \
\text { A) }& \text { Increase } & \text { Increase } & \text { Increase } \
\text { B) } & \text { Increase } & \text { No effect } & \text { Increase } \
\text { C) } & \text { No effect } & \text { No effect } & \text { No effect } \
\text { D) }& \text { No effect } & \text { No effect }
\end{array}$$
A)Option A
B)Option B
C)Option C
D)Option D

Question

All other things being equal, if a company issues a 1% stock dividend, what is the effect on the following ratios? $$\begin{array} { c c c c } 
 & \text { Increase } & \text { Times interest earned } & \text { Financial leverage ratio } \
\text { A) }& \text { Increase } & \text { Increase } & \text { Increase } \
\text { B) } & \text { Increase } & \text { No effect } & \text { Increase } \
\text { C) }  & \text { No effect } & \text { No effect } & \text { No effect } \
\text { D) }& \text { No effect } & \text { No effect }
\end{array}$$
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

The Answer of All other things being equal, if a company issues a 1% stock dividend, what is the effect on the following ratios? $$\begin{array} { c c c c } 
 & \text { Increase } & \text { Times interest earned } & \text { Financial leverage ratio } \
\text { A) }& \text { Increase } & \text { Increase } & \text { Increase } \
\text { B) } & \text { Increase } & \text { No effect } & \text { Increase } \
\text { C) }  & \text { No effect } & \text { No effect } & \text { No effect } \
\text { D) }& \text { No effect } & \text { No effect }
\end{array}$$
A)Option A
B)Option B
C)Option C
D)Option D

All Other Things Being Equal, If a Company Issues a 1