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Luther Industries currently has the following balance sheet (in thousands of dollars): Luther is about to add a new fleet of delivery trucks. The price
Luther Industries currently has the following balance sheet (in thousands of dollars): Luther is about to add a new fleet of delivery trucks. The price of the fleet is $1.5 million. If Luther acquires the new fleet of delivery trucks using a capital lease, Luther's Debt to Equity ratio will be closest to:
Group of answer choices
0.66
1.5
0.80
2.0
Assets Liabilities Cash $500 $4500 Debt Property, Plant, and Equipment $7000 $3000 Equity Total Debt plus Equity $7500 $7500 Total AssetsStep by Step Solution
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