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.

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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!