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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.
effective rate.
14-
Multiple Choice Question 78
On October 1, Steve’s Carpet Service borrows $250,000 from
First National Bank on a 3-month, $250,000, 8% note. The entry