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

Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to ________.
A) 4.51
B) 2.25
C) 1.13
D) 3.16

Question

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

Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2006 is closest to ________.
A) 4.51 
B) 2.25 
C) 1.13 
D) 3.16

Quizplus · Accepted Answer

B) D / E = Total debt / Total equity 11eaabab_c0c9_33d4_b90e_15cdefb216b5_TB5536_11 Long-term debt (234.4) = 283.8 million 11eaabab_c0c9_33d5_b90e_3de370efaab6_TB5536_11

Luther Corporation Consolidated Balance Sheet