Author Question: If transportation costs were a huge portion of a firm's expenses and the firm expected gas prices to ... (Read 94 times)

jparksx · **on:** Jul 10, 2018

If transportation costs were a huge portion of a firm's expenses and the firm expected gas prices to increase greatly in the next year, then in preparing its pro forma income statement the firm should ________.

A) use the percentage of transportation costs from last year's sales
B) decrease the percentage of transportation costs from the percentage of last year's sales
C) increase the percentage of transportation costs from the percentage of last year's sales
D) double the percentage of transportation costs from the percentage of last year's sales

Question 2

The yield to maturity

A)

equates a bond's price with the sum of its discounted cash flows.
B)

is the rate earned over the life of the bond.
C)

must be higher than the coupon rate.
D)

must be lower than the coupon rate.