Use the Table for the Question(s)below

question 53

Multiple Choice

Use the table for the question(s) below.
Consider the following balance sheet:
-If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share,then using the market value of equity,the debt to equity ratio for Luther in 2009 is closest to:

• A)1.47.
• B)1.78.
• C)2.31.
• D)4.07.

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Definitions:

U.S. Economy

The economic system of the United States characterized by a mixed economy with both private and public enterprises contributing to the gross domestic product (GDP).

Great Depression

A severe worldwide economic downturn that took place during the 1930s, characterized by high unemployment rates and significant declines in economic activity.

Early 1980s

A period characterized by significant economic events such as high inflation, high interest rates, and the start of neoliberal economic policies in many countries.

Supply-Side Approach

An economic theory that advocates reducing barriers and taxes on the producers of goods and services to stimulate production and economic growth.