1. When a corporation buys back its own stock the stock is then called: a. Bond stock b. Treasury stock c. Preferred stock 2. Which type of business would have a Retained Earnings account in the Shareholder's Equity section? a. Sole proprietorship b. Partnership c. Corporation 3. The interest tax shield allows a corporation to deduct interest expense from its Earnings Before Interest and Tax before the tax amount is calculated on Earnings Before Tax, giving the corporation a tax deduction for its interest expense. a. True b. False 4. When an investor receives the same dollar amount at the same time period for multiple periods, these payments are called a(n): a. Annuity b. Bankruptcy c. Partnership d. Default 5. A bond that has a poor rating from a rating agency, such as below investment grade from the Standard and Poor agency, is called a: a. Premium bond b. Municipal bond c. Junk bond