Net Devices Inc. The following balance sheets and income statements are for Net Devices Inc., a manufacturer of small electronic devices, including calculators, personal digital assistants and mp3 players. For purposes of these questions assume that the company has an effective tax rate of 35%. BALANCE SHEETS ASSETS ($ in thousands) Fiscal year end 2011 2010 2009 Cash $875,650 $571,250 $154,230 Marketable securities 6,560 0 0 Receivables 771,580 775,250 902,000 Inventories 1,320,150 1,254,600 1,418,500 Other current assets 249,000 231,200 229,900 Total current assets 3,222,940 2,832,300 2,704,630 Property, plant & equipment 1,118,750 1,100,300 1,122,400 Intangibles 263,050 241,000 215,600 Deposits & other assets 184,500 168,250 168,900 Total assets $4,789,240 $4,341,850 $4,211,530 LIABILITIES ($ in thousands) Fiscal year end 2011 2010 2009 Accounts payable $1,178,540 $1,061,100 $1,138,250 Current long term debt 18,100 316,500 150,900 Accrued expenses 664,100 615,900 585,400 Income taxes payable 138,900 108,400 38,200 Other current liabilities 0 0 0 Total current liabilities 1,999,640 2,101,900 1,912,750 Long term debt 478,250 378,400 599,630 Other long term liabilities 13,350 0 0 Total liabilities 2,491,240 2,480,300 2,512,380 Preferred stock 850,000 850,000 550,000 Common stock net 4,000 3,950 3,800 Additional Paid-in Capital 869,000 758,000 689,500 Retained earnings 1,430,500 1,055,000 1,245,050 Treasury stock (855,500) (805,400) (789,200) Shareholders' equity 2,298,000 1,861,550 1,699,150 Total Liab. & Equity $4,789,240 $4,341,850 $4,211,530 INCOME STATEMENTS ($ in thousands) Fiscal year end 2011 2010 Net sales $11,455,500 $11,082,100 Cost of Goods Sold (8,026,450) (7,940,065) Gross profit 3,429,050 3,142,035 Selling, general & admin. Exp. (1,836,400) (1,789,200) Income before deprec. & amort. 1,592,650 1,352,835 Depreciation & amortization (785,250) (757,250) Interest expense (46,195) (43,340) Income before tax 761,205 552,245 Provision for income taxes (157,725) (112,290) Minority interest Net income Outstanding shares (in thousands) Preferred Dividends (in thousands) $603,480 $439,955 308,515 303,095 $85,000 $85,000 Refer to the information for Net Devices Inc. What is Net Devices' capital structure leverage ratio for 2011? a. 10.32 b. 3.71 c. 1.68 d. 3.89