Refer to the income statement above. For the year ending December 31, 2006 Luther's earnings per share is closest to ________
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)
2006 2005
Total sales 610.1 578.3
Cost of sales -500.2 -481.9
Gross profit 109.9 96.4
Selling, general, and
administrative expenses -40.5 -39.0
Research and development -24.6 -22.8
Depreciation and amortization -3.6 -3.3
Operating income 41.2 31.3
Other income -- --
Earnings before interest and taxes (EBIT) 41.2 31.3
Interest income (expense) -25.1 -15.8
Pretax income 16.1 15.5
Taxes -5.5 -5.3
Net income 10.6 10.2
Price per share $16 $15
Sharing outstanding (millions) 10.3 8.0
Stock options outstanding (millions) 0.4 0.1
Stockholders' Equity 126.6 63.6
Total Liabilities and Stockholders' Equity 533.1 386.7
A) $0.51
B) $1.03
C) $0.82
D) $1.23
Answer: B
You might also like to view...
The 1982 United Nations Convention on the Law of the Sea demands that states monitor and assess the risks and effects of pollution and publish the results of those studies
Indicate whether the statement is true or false
The Fair Debt Collection Practices Act defines all of the following practices as abusive, EXCEPT:
a. unfair means to collect a debt. b. falsely representing that a lawsuit is about to be filed. c. telephoning the debtor at 8:00 a.m. d. using obscene language.
The outstanding debt of Berstin Corp. has ten years to maturity, a current yield of 7%, and a price of $95. What is the pretax cost of debt if the tax rate is 30%
A) 4.9% B) 6.5% C) 7.0% D) 7.37%
The management of Woznick Corporation has been concerned for some time with the financial performance of its product V86O and has considered discontinuing it on several occasions. Data from the company's accounting system for this product for last year appear below:Sales$150,000Variable expenses$ 72,000Fixed manufacturing expenses$ 50,000Fixed selling and administrative expenses$ 33,000In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has revealed that $30,000 of the fixed manufacturing expenses and $13,000 of the fixed selling and administrative expenses are avoidable if product V86O is discontinued.What would be the financial advantage (disadvantage) from dropping product V86O?
A. $35,000 B. $5,000 C. ($35,000) D. ($5,000)