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 2012 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 2012 is closest to:
A)0.43 
B)2.29 
C)2.98 
D)3.57

Quizplus · Accepted Answer

The debt to equity ratio is calculated by dividing total debt by the book value of equity. The given options suggest that the correct calculation results in a ratio closest to 2.29.

Use the Table for the Question(s)below