The independence hypothesis allows for bankruptcy and agency ...

[SAVANNAHHOOPER23]

The independence hypothesis allows for bankruptcy and agency costs.
 
  Indicate whether the statement is true or false

Question 2

The percent of sales method does not accurately estimate the balances for lumpy assets. Which of
  the following statements best describes the possible errors?
 
  A) The percent of sales method consistently overestimates the forecasted balances of lumpy
  assets.
  B) If fixed assets are utilized at full capacity currently, the percent of sales method will
  underestimate the forecasted fixed asset balance.
  C) If excess capacity exists, the percent of sales method will overestimate asset requirements.
  D) The percent of sales method consistently underestimates the forecasted balances of lumpy
  assets.

[todom5090]

Answer to Question 1

FALSE

Answer to Question 2

C