income to stockholders may increase as a result of trading on the
equity.
bond interest is deductible for tax purposes.
11-Multiple Choice Question 194
The times interest earned ratio is computed by dividing
income before interest expense by interest expense.
net income by interest expense.
income before income taxes and interest expense by interest expense.
income before income taxes by interest expense.
12- Multiple Choice Question 152
If the market interest rate is greater than the contractual interest rate,
bonds will sell
at a discount.
only after the stated interest rate is increased.
at face value.
at a premium.
13- Multiple Choice Question 158
The market interest rate is often called the
coupon rate.
contractual rate.
stated rate.