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A firm has a current ratio of 4.2, while the industry average is 1.2. How...

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Finance

A firm has a current ratio of 4.2, while the industry average is 1.2. How will this ratio be viewed by lenders and shareholders?

A. Both will be happy the firm has a lot of liquidity
B. Shareholders will be unhappy, but lenders will be happy
C. Shareholders will be happy, but lenders will be unhappy
D. Both will be unhappy that so much money is tied up in low-return assets

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