15. Which one of the following is the least likely reason a company may acquire an ownership interest in another company? A) To exercise an active role in the business' activities B) To take advantage of operating and/or cost synergies C) To benefit from an overvaluing of assets in the investee company D) To oust an inefficient management team 16. Southern Airlines issued 25-year bonds with a maturity value of $2 million. Which statement is true if the bonds were issued at a premium? A) The yield rate of interest exceeded the coupon rate B) The cash rate of interest exceeded the coupon rate C) The yield rate of interest was less than the coupon rate D) The yield rate of interest was greater than the maturity value of the bonds 17. The Evanston Company issued S 125,000 of 6% bonds on January l at a discount of SS,428. Interest expense reported during the year totaled $7,810, while amortization amounted to S310. How much is the book value of the bonds on December 31? A) $108,762 B) $109,072 C) $112,182 D) $116,882 18. What is a coupon payment? A) A payment of principal to bondholders B) The amount of interest expense reported on the income statement by a borrower C) The payment amount required to retire bonds before maturity D) The periodic payment to bondholders at each interest payment date 19. Which statement is true as it relates to callable bonds? A) The bond investor has the right to exchange the bonds for stock B) The issuing company can pay off the bonds before maturity that the bonds be repaid prior to the maturity date C) The bond D) The bonds are considered junior to the claims of secured creditors 20. During the year, Cellular Land, Inc. issued 1,500 shares of its $0.50 stated value common stock for $15 per share, and declared and paid cash dividends totaling S0.25 per share. By what amount does contributed capital increase as a result of these events? A) $22,500 B) 750 C) $21,750 D) $22,125