1. What is the Gross Margin in 2006?

2. What is the Quick Ratio in 2005

3. Calculate the P/E ratio for 2005

4. Calculate the ROE in 2006 using the Dupont Framework

Assets Current Assets Cash Accounts receivable Inventories Other current assets Total current assets Long-Term Assets Land Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill Other long-term assets Total long-term assets Total Assets Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Liabilities and 2006 2005 Stockholders' Equity 65.6 54.3 45.8 5.5 171.2 58.5 233.1 60.0 65.3 62.1 109.4 91.5 116.3 99.6 Current Liabilities Accounts payable 39.6 debt Notes payable / short-term Current maturities of long- 42.9 term debt 3.0 Other current liabilities 144.0 (57.9) (52.5) Total current liabilities Long-Term Liabilities Long-term debt Capital lease obligations Deferred taxes 200.7 Other long-term liabilities Total long-term liabilities Total liabilities 63.0 42.0 356.1 242.7 Stockholders' Equity Total liabilities and 527.3 386.7 Stockholders' Equity 2006 88.8 10.7 38.7 6.0 144.2 234.4 22.8 257.2 401.4 125.9 527.3 2005 73.5 9.6 36.9 12.0 132.0 168.9 22.2 191.1 323.1 63.6 386.7 Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) Total sales Cost of sales Gross profit Selling, general, and administrative expenses Research and development Depreciation and amortization Operating income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Pretax income Taxes Net income Price per share Sharing outstanding (millions) Stock options outstanding (millions) Stockholders' Equity Total Liabilities and Stockholders' Equity 2006 610.1 -500.2 109.9 -40.5 -24.6 -3.6 41.2 -- 41.2 -25.1 16.1 -5.5 10.6 $16 10.3 0.4 126.6 533.1 2005 578.3 -481.9 96.4 -39.0 -22.8 -3.3 31.3 -- 31.3 -15.8 15.5 -5.3 10.2 $15 8.0 0.1 63.6 386.7