Use the Table for the Question(s) Below

question 34

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 capital lease, Luther's debt-to-equity ratio will be closest to ________.

• A) 0.66
• B) 1.5
• C) 0.80
• D) 2.0

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Definitions:

Pay Equality

The principle of ensuring that all individuals are paid equally for the same work without discrimination based on gender, race, or other irrelevant factors.

Status Symbols

Items or actions that serve to signify a person's social position, wealth, or prestige.

Management By Objectives

A management strategy model designed to enhance an organization's performance by establishing clear goals mutually agreed upon by both the management and the employees.

Ability Of Rewards

The potential of rewards to influence the motivation and behavior of individuals, based on their perceived value and appropriateness.