Assume that each of the following changes is independent (i.e., except for this change, all other factors remain unchanged). In each case, indicate what will happen to the earnings multiplier and...

Assume that each of the following changes is independent (i.e., except for this change, all other factors remain unchanged). In each case. indicate what will happen to the earnings muitiplier and explain why. a. The return on equity increases. b. The debt-equity ratio declines . Overall productivity of capital increases d. The dividend payout ratio declines


Extracted text: Assume that each of the following changes is independent (i.e., except for this change, all other factors remain unchanged). In each case, indicate what will happen to the earnings multiplier and explain why. a. The return on equity increases b. The debt-equity ratio declines c. Overall productivity of capital increases d. The dividend payout ratio declines