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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) :
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 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

Correct Answer:

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