Use the Table for the Question(s)below

question 35

Multiple Choice

Use the table for the question(s) below.
Consider the following balance sheet:
-When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:

• A)0.43
• B)2.29
• C)2.98
• D)3.57

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Definitions:

Opportunity Cost

The cost associated with not choosing the next best alternative when making a decision, representing the benefits one could have received by taking an alternative action.

Alternative Use

The value or potential benefit that is foregone as a result of using an asset or resource in a particular way instead of another possible way.

Sunk Costs

are past expenses that have already been incurred and cannot be recovered or changed, and thus should not affect future business decisions.

Avoidable Costs

Expenses that can be eliminated if a particular decision is made, not incurred in the absence of the decision.