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

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

Correct Answer:

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