What is the debt-to-equity ratio for tampa corporation

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Problem 1: If bonds were initially issued at a discount, the interest expense on the bonds calculated using the effective interest method will

a. remain constant throughout the bonds' life.
b. fluctuate throughout the bonds' life.
c. decrease as the bonds approach their maturity date.
d. increase as the bonds approach their maturity date.

Problem 2: Tampa Corporation's balance sheet showed the following amounts for their liabilities and stockholders' equity accounts: Current Liabilities, $20,000; Bonds Payable, $60,000; Lease Obligations, $12,000; and Deferred Income Taxes, $2,000. Total stockholders' equity was $42,000. The debt-to-equity ratio is

a. 2.24.
b. 0.45.
c. 0.58.
d. 1.76.

Reference no: EM132826418

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