a.

Luther Corporation

Consolidated Balance Sheet

December 31, 2006 and 2005 (in $ millions)

Assets	2006	2005	Liabilities and Stockholders' Equity	2006	2005
Current Assets			Current Liabilities
Cash	56.6	58.5	Accounts payable	89.3	73.5
Accounts receivable	55	39.6	Notes payable / shortterm debt	10.1	9.6
Inventories	44.2	42.9	Current maturities of longterm debt	38.1	36.9
Other current assets	5.5	3.0	Other current liabilities	6.0	12.0
Total current assets	161.3	144.0	Total current liabilities	143.5	132.0
LongTerm Assets			LongTerm Liabilities
Land	66.5	62.1	Longterm debt	232.3	168.9
Buildings	110.1	91.5	Capital lease obligations
Equipment	119.9	99.6
Less accumulated depreciation	(55.8)	(52.5)	Deferred taxes	22.8	22.2
Net property, plant, and equipment	240.7	200.7	Other longterm liabilities
Goodwill	60.0		Total longterm liabilities	255.1	191.1
Other longterm assets	63.0	42.0	Total liabilities	398.6	323.1
Total longterm assets	363.7	242.7	Stockholders' Equity	126.4	63.6
Total Assets	525	386.7	Total liabilities and Stockholders' Equity	525	386.7

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. 3.44

b. 1.72

c. 0.86

d. 2.41

Last Trade: 14.15 14.02-14.45 2:05PM ET Day's Range: 52wk Range: Volume: Trade Time: Change: Prev Close: 8.40-19.93 +0.07 (0.49%) 14.22 9,501,729 14,177,600 14.34 Open: Bid: 9.59B Avg Vol (3m): Market Cap: P/E (ttm): EPS (ttm): 14.15 38.87 Ask: 14.18 0.36 1y Target Est: 20.50 Div & Yield: N/A (N/A) What is the bid - ask spread on the stock shown above? O A. 3 cents O B. 1 cent O C. 12 cents OD. 6 cents