Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its Debt -Capital Ratio for 2009 is closest to:
A)0.696
B)0.37
C)1.89
D)0.654

Name: Luther Corporation's stock price is $39 per share and the company has 20 million shares outstanding.Its Debt -Capital Ratio for 2009 is closest to: A)0.696 B)0.37 C)1.89 D)0.654
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

A)Debt-Capital Ratio = Total Debt/Total Equity + Total Debt = (10.5 + 39.9 + 239.7)/(126.6 + 10.5 + 39.9 + 239.7)= 0.696

Luther Corporation's Stock Price Is $39 Per Share and the Company