Explain the two ratios for determining the use of pension fund for purchase of 20-year bond.

[{'sectionSequence': 0, 'sectionHeaderText': '

a.

\r\n', 'solutionSubsections': [{'sectionName': 'To determine', 'sectionText': '\r\n

Explain the two ratios for determining the use of pension fund for purchase of 20-year bond.

\r\n', 'sectionSequence': 0, 'computed': {'sectionNameWithHtmlRemoved': 'To determine', 'sectionTextWithHtmlRemoved': 'Explain the two ratios for determining the use of pension fund for purchase of 20-year bond.'}}, {'sectionName': 'Explanation', 'sectionText': '\r\n

Times interest earned ratio and debt to asset ratio

\r\n

Times - interest earned ratio quantifies the number of times the earnings before interest and taxes can pay the interest expense.

\r\n

Formula:

\r\n

Times-interest-earnedratio}=Netincome+Incometaxexpense+InterestexpenseInterestexpense

', 'sectionSequence': 1, 'computed': {'sectionNameWithHtmlRemoved': 'Explanation', 'sectionTextWithHtmlRemoved': 'Times interest earned ratio and debt to asset ratio Times - interest earned ratio quantifies the number of times the earnings before interest and taxes can pay the interest expense. Formula: Times-interest-earned ratio } = Net income + Income tax expense + Interest expense Interest expense'}}]}, {'sectionSequence': 1, 'sectionHeaderText': '

b.

\r\n', 'solutionSubsections': [{'sectionName': 'To determine', 'sectionText': '\r\n

Explain the two ratios that will be used by a bank for contemplating a short-term loan.

\r\n', 'sectionSequence': 0, 'computed': {'sectionNameWithHtmlRemoved': 'To determine', 'sectionTextWithHtmlRemoved': 'Explain the two ratios that will be used by a bank for contemplating a short-term loan.'}}]}, {'sectionSequence': 2, 'sectionHeaderText': '

c.

\r\n', 'solutionSubsections': [{'sectionName': 'To determine', 'sectionText': '\r\n

Explain the ratios that are used by stockholders.

\r\n', 'sectionSequence': 0, 'computed': {'sectionNameWithHtmlRemoved': 'To determine', 'sectionTextWithHtmlRemoved': 'Explain the ratios that are used by stockholders.'}}]}]