The Following Question Relate to PQR, Which Has the Following

question 16

Multiple Choice

The following question relate to PQR, which has the following ratios: return on assets, (ROA) 12%; return on equity (ROE) 14%; and current ratio (CR) of 2:1.
-A company declares and pays an interim dividend.The effect of this transaction is to:

• A) decrease CR,but not affect ROA and ROE
• B) decrease CR,but increase ROA and ROE
• C) decrease CR,increase ROA,and not affect ROE
• D) have no effect.

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Definitions:

Funder's First Law

The psychological principle stating that "Great strengths are usually great weaknesses, and surprisingly often the opposite is true as well," highlighting the complexity of personality traits.

Psychological Triad

Refers to the three components of psychological analysis: thoughts, feelings, and behaviors.

Pigeonholing

The practice of classifying or categorizing people, ideas, or objects narrowly and often unfairly, limiting potential or understanding.

Funder's First Law

A principle in psychology which suggests that important or extreme behavior in one situation tends to be important or extreme in other situations as well.