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:

Expected to Grow

This term refers to the anticipation of an increase in size, value, or quantity of an economic entity or variable.

Dividends Are Expected

A statement indicating that shareholders anticipate receiving a share of the profits from a company, usually distributed in the form of cash payments.

Investors Require

The expected return or conditions that investors seek before committing capital to an investment or project.

Current Price

Current Price is the market price at which an asset or service can be bought or sold at a particular time.