The percent of sales method assumes that all assets and all ...

[jho37]

The percent of sales method assumes that all assets and all liabilities increase proportionally with
  sales, but retained earnings does not.
 
  Indicate whether the statement is true or false

Question 2

William Corp. bonds have a current yield of 7 and mature in 10 years. Smith Corp. bonds have a
  current yield of 5 and mature in 10 years. Given this information, which of the following
  statements is MOST correct?
 
  A) Smith Corp. bonds are riskier than William Corp. bonds.
  B) William Corp. bonds will have a higher yield to maturity than Smith Corp. bonds.
  C) Smith Corp. bonds will sell for a lower price than William Corp. bonds.
  D) If both bonds have the same yield to maturity, then the price of Smith Corp. bonds must be
  less than the price of William Corp. bonds.

[Perkypinki]

Answer to Question 1

FALSE

Answer to Question 2

D