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	56.1	58.5	Accounts payable	87.8	73.5
Accounts receivable	54.6	39.6	Notes payable / shortterm debt	9.4	9.6
Inventories	46.7	42.9	Current maturities of longterm debt	38.7	36.9
Other current assets	5.8	3.0	Other current liabilities	6.0	12.0
Total current assets	163.2	144.0	Total current liabilities	141.9	132.0
LongTerm Assets			LongTerm Liabilities
Land	66.9	62.1	Longterm debt	231.4	168.9
Buildings	109.3	91.5	Capital lease obligations
Equipment	115.4	99.6
Less accumulated depreciation	(55.1)	(52.5)	Deferred taxes	22.8	22.2
Net property, plant, and equipment	236.5	200.7	Other longterm liabilities
Goodwill	60.0		Total longterm liabilities	254.2	191.1
Other longterm assets	63.0	42.0	Total liabilities	396.1	323.1
Total longterm assets	359.5	242.7	Stockholders' Equity	126.6	63.6
Total Assets	522.7	386.7	Total liabilities and Stockholders' Equity	522.7	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. 3.43

B. 1.71

C. 0.86

D. 2.4