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- Using the formula Interest = Principal x Rate x Time, if all elements are known except for the principal, the formula should be written as Interest Principal = Rate x Time True FalseQ4. Interest expense should be calculated based on interest rates and debt balances and by using a trend in interest expense or some other method. Choices: True or False1. How are TIPS quoted? A. As a percentage of par value B. As a percentage of accrued interest C. At a discount of par value D. As a percentage of current accrued principal
- (a) Define effective interest rates and prove that r=| 1+ 1.On January 1, 2019, Rama Company issued 3,000 shares of 8%, OMR100 par value, preferred stock for 250,000. The board of directors declared dividends on December 30, 2019 and the dividends paid on 13/12/2019. As a result of this transaction additional paid in capital should be: Select one: a. Credit by OMR50000 b. Debt by OMR250000 c. Debt by OMR5000 d. None of the optionsNet Income is calculated as follows: NI = NII- Burden – PL - + SG-T Where, bank burden (non-interest expense < non-interest Income). Select one: O True O False Next p
- Questions: 1. Times interest earned ratio 2. Debt to equity ratioAnswer the following questions correctly. a. The interest is computed on the principal and on the accumulated past interest . a. Compound Interestb. Interestc. Simple interestd. rate b. Which of the following are NOT true? I. Principal is the money given or paid invested in the origin date II. Origin date is a date on which money is paid by the borrower. III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.what of the following is the correct calculation for interest cover : a- total debt / interest payable b- interest payable / total debt c- operating profit / interest payable d- interest payable / operating profit