Answer (B) is correct . A company with a higher dividend payout ratio is distributing more of its earnings as dividends to common shareholders. It will have less cash and less total assets than a comparable firm with a lower payout ratio. The debt-to-assets ratio will be higher because total assets are lower, and the current ratio will be lower because cash is lower.
Answer (A) is incorrect because The current ratio will be lower.
Answer (C) is incorrect because The debt-to-assets ratio will be higher and the current ratio will be lower.
Answer (D) is incorrect because The debt-to-assets ratio will be higher.
|
