Question: need info on number 5 Il Sales While holding its accounts receivable constant, then, other things held constant, its days' sales outstanding (DSO) will increase.
Il Sales While holding its accounts receivable constant, then, other things held constant, its days' sales outstanding (DSO) will increase. Idd here is no relationship between the days' sales outstanding (DSO) and the average collection period (ACP). These ratios measure entirely different things. e. A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio. 5. The YTMs of three $1,000 face value bonds that mature in 10 years and have the same level of risk are equal. Bond A has an 8% annual coupon, Bond B has a 10% annual coupon, and Bond C has a 12% annual coupon. Bond B sells at par. Assuming interest rates remain constant for the next 10 years, which of the following statements is CORRECT? (C-5) a. Since the bonds have the same YTM, they should all have the same price, and since interest rates are not expected to change, their prices should all remain at their current levels until maturity. b. Bond C sells at a premium (its price is greater than par), and its price is expected to increase over the next year. c. Bond A sells at a discount (its price is less than par), and its price is expected to increase over the next year. d. Over the next year, Bond A's price is expected to decrease, Bond B's price is expected to stay the same, and Bond C's price is expected to increase. e. Bond A's current yield will increase each year. Which of the following statements is NOT CORRECT? (C-1) a. When a corporation's shares are owned by a few individuals and are not traded on public market say that the firm is "closely, or privately, held." h"Going public" establishes a firm's true intrinsic value, and it also insures that a highly liquid ma 1 firm's shares. 11. for the first time, the transac
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