Question: 12. Listed below in the left column is a specific ratio. In the right column is a business transaction. Required: Indicate the effect of this
12. Listed below in the left column is a specific ratio. In the right column is a business transaction. Required: Indicate the effect of this transaction on the given ratio. Use + for increase, - for decrease, and 0 for no effect. a Ratio Earnings per share Transaction Issued a stock dividend. b. Dividend yield High earnings causes a substantial rise in market price of the common stock. c. Earnings per share Collect accounts receivable. d. Net profit margin Experienced a substantial rise in cost of goods sold. e. Return on equity The firm has a 10% increase in profit
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