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
Correct Answer:

Verified
Correct Answer:
Verified
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