Luther Corporation Consolidated Balance Sheet

Multiple Choice

Luther Corporation
Consolidated Balance Sheet
December 31, 2006 and 2005 (in $ millions)

Refer to the balance sheet above. If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then using the market value of equity, the debt-equity ratio for Luther in 2006 is closest to ________.

A) 3.45
B) 1.72
C) 0.86
D) 2.41