Use the Table for the Question(s)below

question 59

Multiple Choice

Use the table for the question(s) below.
Luther Industries currently has the following balance sheet (in thousands of dollars) :
Luther is about to add a new fleet of delivery trucks.The price of the fleet is $1.5 million.
-If Luther acquires the new fleet of delivery trucks using a finance lease,Luther's debt-to-equity ratio will be closest to:

• A)0.66
• B)1.5
• C)0.80
• D)2.0
• E)2.5

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Definitions:

Eurodollar Market

A market for trading U.S. dollars in foreign countries.