Luther Corporation Consolidated Balance Sheet 30 June 2017 and 2018

question 10

Multiple Choice

Luther Corporation Consolidated Balance Sheet 30 June 2017 and 2018 (in $ millions)

-Refer to the balance sheet above. If in 2017, Luther has 5.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt-equity ratio for Luther in 2017 is closest to:

• A)2.71
• B)2.61
• C)2.59
• D)2.55