A retail company that leases the majority of its space has:·total assets of $4 500 milli

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

After 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%.