Use the table for the question(s)below.
Consider the following balance sheet:
-When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:
A)0.43
B)2.29
C)2.98
D)3.57

Question

Use the table for the question(s)below.
Consider the following balance sheet:  
-When using the book value of equity,the debt to equity ratio for Luther in 2009 is closest to:
A)0.43 
B)2.29 
C)2.98 
D)3.57

Quizplus · Accepted Answer

B)D/E = Total Debt/Total Equity
Total Debt = (notes payable (10.5)+ current maturities of long-term debt (39.9)+ long-term debt (239.7)= 290.1 million
Total Equity = 126.6,so D/E = 290.1/126.6 = 2.29

Use the Table for the Question(s)below