A regular corporation pays taxes on its profits, and the shareholders of the corporation pay their own personal tax income tax when the remaining profits are distributed to them. This is called

		Financial leverage.
		Double taxation.
		Unlimited liability.
		Liquidity risk.

You are interested in purchasing a new automobile that costs $38,000. The dealership offers you a special financing rate of 0.35% per month (4.20% APR compounded monthly) for 48 months. Assuming that you do not make a down payment on the auto and you take the dealer's financing deal, then your monthly car payments would be closest to:

		$841.10
		$832.81
		$861.41
		$847.70

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	59.5	58.5	Accounts payable	88.9	73.5
Accounts receivable	55.1	39.6	Notes payable / short-term debt	10.4	9.6
Inventories	45.9	42.9	Current maturities of long-term debt	37.3	36.9
Other current assets	5.5	3.0	Other current liabilities	6.0	12.0
Total current assets	166.0	144.0	Total current liabilities	142.6	132.0
Long-Term Assets			Long-Term Liabilities
Land	66.1	62.1	Long-term debt	236	168.9
Buildings	109.4	91.5	Capital lease obligations
Equipment	118.5	99.6
Less accumulated depreciation	(54.9)	(52.5)	Deferred taxes	22.8	22.2
Net property, plant, and equipment	239.1	200.7	Other long-term liabilities	---	---
Goodwill	60.0	--	Total long-term liabilities	258.8	191.1
Other long-term assets	63.0	42.0	Total liabilities	401.4	323.1
Total long-term assets	362.1	242.7	Stockholders' Equity	126.7	63.6
Total Assets	528.1	386.7	Total liabilities and Stockholders' Equity	528.1	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 Luther's market-to-book ratio would be closest to ________.

		2.58
		0.64
		1.29
		1.80