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You are considering purchasing bonds issued by a corporation and have undertaken some basic financial & credit analysis of the company. In doing so ,

You are considering purchasing bonds issued by a corporation and have undertaken some basic financial & credit analysis of the company. In doing so, you have also obtained relevant benchmark data. Following are the results of your ratio & financial analysis accompanied by the industry benchmarks: Company BenchmarkCurrent ratio 2.54Quick ratio 1.92.6Operating profit margin 10%11% Net profit margin 2.1%8%Return on equity 37%14%Debt ratio 85%35% Times-interest-earned 4.5X 9.3X Based on your financial analysis of the companys liquidity, profitability and leverage as compared with the benchmark data, what is your conclusion as to whether you will move forward with the bond purchase? (You must discuss areas of strength or weakness (ie the ratios) that helped you reach your conclusion.)

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