Use the Table for the Question(s)below

Multiple Choice

Use the table for the question(s) below.

- Consider the above balance sheet for your firm (in thousands of dollars) .You plan on acquiring some new equipment using a $400,000 finance lease.If you go through with the lease,what will be your firm's new debt-equity ratio?

A) 0.63
B) 0.50
C) 1.27
D) 0
E) 1.0