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:

Utility Function

A mathematical representation of how different quantities of goods or services generate levels of happiness or satisfaction to the consumer.

Consumption

This term implies the act of using up resources or services to satisfy human wants, often measured to assess the economic activity within a country.

Grocery Store

A retail store that primarily sells food, both fresh and packaged, as well as various household goods.

Utility Function

A mathematical representation of how consumers rank different bundles of goods based on the level of satisfaction (utility) obtained from them.