Question: The current ratio equals current assets divided by current liabilities. Cardinal Corporation has a current ratio of 0.95. The industry average current ratio is 1.89.

The current ratio equals current assets divided by current liabilities. Cardinal Corporation has a current ratio of 0.95. The industry average current ratio is 1.89. Cardinal Corporation appears to have ______________ relative to its industry peers.

a.

good investment value

b.

poor profitability

c.

short-term liquidity problems

d.

long-term solvency problems

e.

low stock market value

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