Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Use the table for the​ question(s) below.
 
Consider the following balance​ sheet:
Luther Corporation
Consolidated Balance Sheet
December​ 31, 2019 and 2018​ (in $​ millions)
 
Assets
2019
2018
 
Liabilities and​ Stockholders' Equity
2019
2018
Current Assets
 
 
 
Current Liabilities
 
 
Cash
63.6
58.5
 
Accounts payable
87.6
73.5
Accounts receivable
55.5
39.6
 
Notes payable​ /
short−term
debt
10.5
9.6
Inventories
45.9
42.9
 
Current maturities of
long−term
debt
39.9
36.9
Other current assets
6.0
3.0
 
Other current liabilities
6.0
12.0
     Total current assets
171.0
144.0
 
     Total current liabilities
144.0
132.0
 
 
 
 
 
 
 
Long−Term
Assets
 
 
 
Long−Term
Liabilities
 
 
  Land
66.6
62.1
 
  
Long−term
debt
239.7
168.9
  Buildings
109.5
91.5
 
  Capital lease obligations
−−−
−−−
  Equipment
119.1
99.6
 
Total Debt
239.7
168.9
  Less accumulated
  depreciation
​(56.1)
​(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
262.5
191.1
Other
long−term
assets
63.0
42.0
 
Total liabilities
406.5
323.1
     Total
long−term
assets
362.1
242.7
 
​Stockholders' Equity
126.6
63.6
 
 
 
 
 
 
 
Total Assets
533.1
386.7
 
Total liabilities and​ Stockholders' Equity
533.1
386.7
Luther​ Corporation's stock price is​ $39 per share and the company has 20 million shares outstanding. Its Debt
−Capital
Ratio for 2019 is closest​ to:
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