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Use the Table for the Question(s)below

Question 59

Multiple Choice

Use the table for the question(s) below.
Luther Industries currently has the following balance sheet (in thousands of dollars) :
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 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:

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