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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