QUESTIONS 45 THROUGH 68 RELATE TO FINANCIAL STATEMENT ANALYSIS

57. A retail company that leases the majority of its space has: • total assets of $4,500 million, • total long-term debt of $2,125 million, and • average interest rate on debt of 12%. Note 8 to the 2011 financial statements contains the following information about the company’s future beginning of year lease commitments: Note 8: Operating leases Year Millions2012 $ 2002013 2002014 2002015 2002016 200Total $ 1,000After adjustment for the off-balance-sheet financing, the debt-to-total-assets ratio for the company is closest to: A. 55%. B. 57%. C. 65%.