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:

Communication Feasibility

Refers to the practicality and possibility of effectively transmitting information between parties.

Social Order

The system of structured relationships, norms, and practices that maintain a cooperative and cohesive society.

Stress Reliever

An activity, practice, or behavior that reduces psychological tension or manages the effects of stress.

Economic Inequality

The unequal distribution of wealth, income, or resources among individuals, communities, or countries, often leading to social and economic disparities.