Which of the following statements is CORRECT? If a security analyst saw that a firm's days' sales outstanding (DSO) was higher than the industry average and trending still higher, this would be interpreted as a sign of strength. A high average DSO indicates that none of the firm's customers are paying on time. In addition, it makes no sense to evaluate the firm's DSO with the firm's credit terms. There is no relationship between the days' sales outstanding (DSO) and the average collection period (ACP). These ratios measure entirely different things. A reduction in accounts receivable would have no effect on the current ratio, but it would lead to an increase in the quick ratio If a firm increases its sales while holding its accounts receivable constant, then its days' sales outstanding will decline, other things held constant A 12-year bond has an annual coupon of 9%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT? If market interest rates decline, the price of the bond will also decline. The bond is currently selling at a price below its par value If market interest rates remain unchanged, the bond's price one year from now will be lower than it is today The bond should currently be selling at its par value. If market interest rates remain unchanged, the bonds price one year from now will be higher than it is today