Impact of Dividend Payout on Financial Ratios

Company XYZ has decided to distribute a dividend of $2 per share to its shareholders. Prior to this dividend distribution, Company XYZ had a retained earnings balance of $50 million and a total equity of $100 million. It is important to understand how such a decision affects key financial ratios used by investors.

Which of the following financial ratios is most likely to be affected by the dividend payout?