Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Use the table for the question(s) below.
Consider the following balance sheet:
Luther Corporation
Consolidated
December 31, 2019 and 2018 (in $ millions)
|
||||||
Assets
|
2019
|
2018
|
|
Liabilities and
|
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
|
(56.1)
|
(52.5)
|
|
|
22.8
|
22.2
|
Net property, plant, and equipment
|
239.1
|
200.7
|
|
Other
long−term
liabilities |
−−−
|
−−−
|
|
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:Expert Solution
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