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15. Company A has a cash ratio of 0.25 and Company B has a cash ratio of 0.72. Also, company A's stock is traded at

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15. Company A has a cash ratio of 0.25 and Company B has a cash ratio of 0.72. Also, company A's stock is traded at an average daily volume of 100 million shares and with a bid-ask spread of 1 cent. Company B's stock is traded at an average daily volume of 5 million shares and with a bid-ask spread of 5 cents. Which of the following is most likely to be true? A) Company A is stock is more liquid than company B's. B) Company B's market liquidity is higher than company A's. C) Company A has greater short-term solvency therefore more liquid. D) Company A's stock has relative higher transaction cost. E) Company A can increase its market liquidity by holding more liquid assets

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