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You obtain the following balance sheet for Moonlimited (in thousands of dollars): Assets Liabilities Cash $800 Debt $3200 Property, Plant, and Equipment $7200 Equity $4800

You obtain the following balance sheet for Moonlimited (in thousands of dollars):

Assets

Liabilities

Cash

$800

Debt

$3200

Property, Plant, and Equipment

$7200

Equity

$4800

Total Assets

$8000

Total Debt plus Equity

$8000

Moonlimited is considering adding a new machine, which will cost Moonlimited $2 million if Moonlimited purchases this new machine. If Moonlimited acquires the new machine through a capital lease, its Debt to Value ratio will be closest to:

a. 0.40

b. 0.65

c. 0.32

d. 0.52

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