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Fayer Corporation has provided the following financial data:

Balance Sheet December 31, Year 2 and Year 1
Assets	Year 2	Year 1
Current assets:
Cash	$161,000	$180,000
Accounts receivable	110,000	130,000
Inventory	181,000	160,000
Prepaid expenses	57,000	70,000
Total current assets	509,000	540,000
Plant and equipment, net	1,044,000	960,000
Total assets	$1,553,000	$1,500,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$188,000	$160,000
Accrued liabilities	57,000	60,000
Notes payable, short term	36,000	40,000
Total current liabilities	281,000	260,000
Bonds payable	200,000	200,000
Total liabilities	481,000	460,000
Stockholders' equity:
Common stock, $4 par value	200,000	200,000
Additional paid-in capital-common stock	80,000	80,000
Retained earnings	792,000	760,000
Total stockholders' equity	1,072,000	1,040,000
Total liabilities & stockholders' equity	$1,553,000	$1,500,000

Income StatementYear 2 For the Year Ended December 31, Year 2
Sales (all on account)	$1,220,000
Cost of goods sold	760,000
Gross margin	460,000
Operating expenses	389,846
Net operating income	70,154
Interest expense	14,000
Net income before taxes	56,154
Income taxes (35%)	19,654
Net income	$36,500

Dividends on common stock during Year 2 totaled $4,500. The market price of common stock at the end of Year 2 was $10.88 per share. The company's debt-to-equity ratio at the end of Year 2 is closest to:

		0.27
		0.45
		0.19
		0.22

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