Use the Table for the Question(s)below

question 28

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 capital lease,Luther's Debt to Equity ratio will be closest to:

• A)0.66.
• B)1.5.
• C)0.80.
• D)2.0.

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Definitions:

Dark Lava Rock

Often basalt, this is a type of volcanic rock that is rich in iron and magnesium, giving it a dark coloration.

Continental Crust

The thick part of the Earth's crust that forms the continents and continental shelves, consisting mainly of granitic rocks.

Oceanic Crust

The thin, dense layer of the Earth's crust that underlies the ocean basins, composed primarily of basaltic rock.

Copper Mines

Sites where copper ore is extracted from the Earth, typically through open pit or underground mining methods.