Luther Corporation's Stock Price Is $39 Per Share and the Company

question 94

Multiple Choice

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its book value Debt -Equity Ratio for 2009 is closest to:

• A)2.29
• B)0.31
• C)1.89
• D)0.37

---

Definitions:

Interlocking Directorates

The practice of sharing board members among different companies, which can lead to conflicts of interest and anticompetitive behavior.

Sherman Act

A foundational antitrust law in the United States, enacted in 1890, aimed at preventing anti-competitive practices, monopolies, and cartels.

Clayton Act

A U.S. antitrust law aimed at promoting fair competition for the benefit of consumers, by preventing unfair business practices.

Celler-Kefauver Act

An antitrust law in the United States that prohibits certain types of corporate mergers and acquisitions that could lessen competition.