2006 2005 Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Liabilities and Assets 2006 2005 Stockholders' Equity Current Assets Current Liabilities Cash 65.6 58.5 Accounts payable Notes payable / short-term Accounts receivable 54.3 39.6 debt Current maturities of long- Inventories 45.8 42.9 term debt Other current assets 5.5 3.0 Other current liabilities Total current assets 171.2 144.0 Total current liabilities 88.8 73.5 10.7 9.6 38.7 6.0 144.2 36.9 12.0 132.0 234.4 168.9 65.3 109.4 116.3 Long-Term Liabilities 62.1 Long-term debt 91.5 Capital lease obligations 99.6 Long-Term Assets Land Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill Other long-term assets Total long-term assets (57.9) (52.5) Deferred taxes 22.8 22.2 233.1 60.0 63.0 356.1 200.7 other long-term liabilities Total long-term liabilities 42.0 Total liabilities 242.7 Stockholders' Equity 257.2 401.4 125.9 191.1 323.1 63.6 Total liabilities and 386.7 Stockholders' Equity Total Assets 527.3 527.3 386.7 Refer to the balance sheet above. When using the book value of equity, the debt-equity ratio for Luther in 2005 is closest to 1.13 3.16 2.25 3.39 2006 2005 Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Liabilities and Assets 2006 2005 Stockholders' Equity Current Assets Current Liabilities Cash 59.5 58.5 Accounts payable Notes payable / short-term Accounts receivable 55.1 39.6 debt Current maturities of long- Inventories 45.9 42.9 term debt Other current assets 5.5 3.0 Other current liabilities Total current assets 166.0 144.0 Total current liabilities 88.9 73.5 10.4 9.6 37.3 6.0 142.6 36.9 12.0 132.0 236 Long-Term Liabilities Long-term debt Capital lease obligations 66.1 109.4 118.5 168.9 62.1 91.5 99.6 Long-Term Assets Land Buildings Equipment Less accumulated depreciation Net property, plant, and Jequipment Goodwill Other long-term assets Total long-term assets (54.9) (52.5) Deferred taxes 22.8 22.2 239.1 200.7 Other long-term liabilities 60.0 Total long-term liabilities 63.0 42.0 Total liabilities 362.1 242.7 Stockholders' Equity 258.8 401.4 126.7 191.1 323.1 63.6 Total Assets Total liabilities and 386.7 stockholders' Equity 528.1 528.1 386.7 Refer to the balance sheet above. If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then Luther's market-to-book ratio would be closest to 2.58 O 0.64 0 1.29 O 1.80 2006 2005 Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Liabilities and Assets 2006 2005 Stockholders' Equity Current Assets Current Liabilities Cash 56.1 58.5 Accounts payable Notes payable / short-term Accounts receivable 54.5 39.6 debt Current maturities of long- Inventories 44.8 42.9 term debt Other current assets 5.0 3.0 Other current liabilities Total current assets 160.4 144.0 Total current liabilities 88.1 73.5 10.9 9.6 40.7 6.0 145.7 36.9 12.0 132.0 227 168.9 Long-Term Liabilities 66.8 62.1 Long-term debt 108.5 91.5 Capital lease obligations 117.1 99.6 Long-Term Assets Land Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill Other long-term assets Total long-term assets (54.4) (52.5) Deferred taxes 22.8 22.2. 238 60.0 63.0 361 200.7 Other long-term liabilities Total long-term liabilities 42.0 Total liabilities 242.7 Stockholders' Equity 249.8 395.5 125.9 191.1 323.1 63.6 Total Assets Total liabilities and 521.4386.7 Stockholders' Equity 521.4 386.7 Refer to the balance sheet above. If in 2006 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's enterprise value? O $540.0 million O $771.4 million $385.7 million O $521.4 million