The Following Question Relates to PQR,which Has the Following Ratios

question 38

Multiple Choice

The following question relates to PQR,which has the following ratios: return on assets, (ROA) 10 per cent;return on equity (ROE) 12 per cent;and current ratio (CR) of 1.8:1.
-A company declares and pays a final 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.

---

Definitions:

Rationalists

Philosophers who believe that the primary source of knowledge is reason and logical analysis, rather than sensory experiences.

Empiricists

Philosophers who argue that knowledge comes primarily from sensory experience and observation rather than innate ideas or logical reasoning.

Philosophical Truths

Fundamental insights or understandings about the nature of reality, morality, or knowledge explored within the field of philosophy.

Confirmation Process

A procedure used to verify or validate an item, information, or theory, often involving evidence or experimentation.