Luther Corporation's Stock Price Is $39 Per Share and the Company

question 94

Multiple Choice

Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its book value Debt -Equity Ratio for 2009 is closest to:

• A)2.29
• B)0.31
• C)1.89
• D)0.37

---

Definitions:

Cash

Currency or its equivalents that a company holds and can use to conduct transactions, considered the most liquid form of asset.

Face Value

The nominal or dollar value printed on a stock, bond, or other financial instrument, representing its value at issuance.

Interest

The cost of using borrowed funds, or the return on invested funds, typically expressed as a percentage rate over a period of time.

Expense

A cost incurred in running a business by consuming goods or services in producing revenue. A subdivision of owner’s equity.