Which of the following is incorrect:

• In a financial plan, retained earnings will vary with sales but it will not be a simple percentage of sales.

• All else equal, the lower the coupon rate on a bond, the greater the interest rate risk.

• A series of constant cash flows that occur at the end of each period for a fixed number of periods is called an ordinary annuity.

• Unless a dividend is declared by the board of directors of a company, it is not a liability of the company.

• Capital intensity ratio indicates the amount of assets needed to generate $1 in net income.