Effect of a cash dividend payment


Problem 1: What is the effect (increase, decrease, no effect) of a cash dividend payment on the following ratios (all else equal) Times Interest Earned and Long-term Debt to Equity?

Problem 2: What is the effect (increase, decrease, no effect) of selling inventory for profit on the following ratios (all else equal) Times Interest Earned and Long-term Debt to Equity?

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Finance Basics: Effect of a cash dividend payment
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