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Question

A firm has current assets of 8 million, net income of 4 million and total

liabilities of 12 million but only 6 million in long-term debt. The firm has a total asset turnover of 3 and a debt ratio of 50%. What is the firm's current ratio?


6

0.67

1.5

1.33



I am not sure if it should be the 0.67 or just 6

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