2. A firm has a quick (or acid test) ratio of 1.45, while the industry average is 1.10. This implies Question 6 Select one: a. the firm has a higher P/E ratio than other firms in the industry, and the firm is more likely to avoid insolvency in the short run than other firms in the industry. b. the firm is more likely to avoid insolvency in the short run than other firms in the industry, and the firm may be less profitable than other firms in the industry c. the firm's profit margin is 35% higher than the industry d. the firm's current asset is 1.45 times higher than the industry