Use the Table for the Question(s)below

question 72

Multiple Choice

Use the table for the question(s) below.

-Refer to the balance sheet above.When using the book value of equity,the debt-equity ratio for Luther in 2006 is closest to:

• A)2.21
• B)2.29
• C)2.98
• D)3.03

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Definitions:

Capital Stock

The total value of all physical assets owned by a company that are used in producing goods and services.

Interest Rate

The percentage charged or paid for the use of money, typically expressed as an annual rate on loans or earned on deposits.

Investing

Allocating fiscal resources with the foresight of making an income or profit.

Gross Investment

The total amount spent on new capital assets before accounting for depreciation.