Question: 1. A bond is issued at premium ________. a. when a bond's stated interest rate is less than the market interest rate b. when a

1. A bond is issued at premium ________.

a. when a bond's stated interest rate is less than the market interest rate

b. when a bond's stated interest rate is higher than the market interest rate

c. when a bond's stated interest rate is less than the effective interest rate

d. when a bond's stated interest rate is equal to the market interest rate

2. Alexander Corp. has the following balances as on December 31, 2015:

Total Assets $89,000
Total Liabilities 54,000
Total Equity 35,000

Calculate the debt to equity ratio. (Round your answer to two decimal points.)

a. 0.64

b. 0.04

c. 1.54

d. 1.65

3. If a company is financing more assets with debt than with equity, then the ________.

a. debt to equity ratio will be between 0 to 1

b. debt to equity ratio will be more than 1

c. debt to equity ratio will be negative

d. debt to equity ratio will be equal to 1

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