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Bond ratings are significantly based on all of the following EXCEPT:_______.

a) The times interest earned ratio
b) The debt-to-equity ratio
c) The current ratio
d) The return on assets

User ChrisY
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1 Answer

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Answer:

c) The current ratio

Step-by-step explanation:

The current ratio is an example of a liquidity ratio.

Liquidity ratios measure a company's ability to meet its short term obligations.

Current ratio = curernt assets / current liabilities

Return on assets is a profitability ratio. It measures return on investment

The other ratios are coverage ratios. They measure the ability of the firm to covert its debts payments

User Shivang MIttal
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