In computing the service cost component of pension expenses, the FASB concluded that a. the accumulated benefit obligation provides a more realistic measure of the pension obligation on a going concern basis. b. a company should employ an actuarial funding method to report pension expense that best reflects the cost of benefits to employees. c. the projected benefit obligation using future compensation levels provides a realistic measure of present pension obligation and expense. d. all of these The interest on the projected benefit obligation component of pension expense a. reflects the incremental borrowing rate of the employer. b. reflects the rates at which pension benefits could be effectively settled. c. is the same as the expected return on plan assets. d. may be stated implicitly or explicitly when reported. Preferred dividends are subtracted from earnings when computing earnings per share whether or not the dividends are declared or paid if the preferred stock is: a. Callable. b. Convertible. c. Participating. d. Cumulative. A simple capital structure might include: a. Stock rights. b. Convertible bonds. c. Non convertible preferred stock. d. Stock purchase warrants