Question: Complete the following table by indicating whether the listed transactions or economic events would increase, decrease, or have no effect on the financial ratios listed.

Complete the following table by indicating whether the listed transactions or economic events would increase, decrease, or have no effect on the listed. Explain your reasoning and state any assumptions that youmake.

Debt-toReturn on Dividend Price-to-book equity ratio 1.2 equity 12.4% payout ratio 25% ratio 2.1 Issue of common shares for cash Conversion of long-term debt to common shares Two-for-one stock split Declaration of a cash dividend Increase in the market value of common shares

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