Current Ratio Explain what it means for a firm to have a current ratio equal to .50.

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Current Ratio Explain what it means for a firm to have a current ratio equal to .50. Would the firm be better off if the current ratio were 1.50? What if it were 15.0? Explain your answers.

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: Apr 26, 2011 06:34 AM

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Current Ratio Explain what it means for a firm to have a current ratio equal to .50.

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A current ratio of 050 means that the firm has twice as much in current liabil...View the full answer

Fundamentals of Corporate Finance

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