You are considering buying a bond from a company that has a Quick ratio of 0.45.This means that:

Question

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The Quick ratio measures a company's ability to pay off its short-term liabilities with its liquid assets. A Quick ratio of 0.45 means that the company has 45 cents of liquid assets (such as cash or marketable securities) for every dollar of current liabilities (such as accounts payable or short-term debt). This indicates that the company may have difficulty meeting its short-term obligations and may be a higher risk for bond investors.

You Are Considering Buying a Bond from a Company That