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ABC is a publicly traded company listed on NASDAQ. In ABCs 10-Q and 10-K public statements, ABC disclosed that it recorded a $200 mil. pre-tax

ABC is a publicly traded company listed on NASDAQ. In ABCs 10-Q and 10-K public statements, ABC disclosed that it recorded a $200 mil. pre-tax inventory write-off due to fire in the companys warehouse in 2020:Q3; it realized a $30 mil. pre-tax gain (other income) on the sale of a non-core business in 2020:Q3; The company additionally realized a $50 mil. pre-tax gain (other income) on the sale of a non-core business and $45 mil. pre-tax restructuring costs in connection with a downsizing strategy in 2020:Q4. ABC company produced the following reported year-to-date (YTD) income statements during 2020-2021 period.

Reported YTD Income Statement (in mil. dollars)
2020:Q3 2020:Q4 2021:Q3
Sales 3,500 4100 3600
COGS 2,200 2925 3000
Other Income 50 90 40
SG&A 675 700 120
Restructuring Charge 0 45 0
EBIT 675 520 520
Interest Expense 75 102 73
Pre-tax Income 600 418 447
Income Tax (30%) 180 125.4 134.1
Net Income 420 293 313

ABC has 150 mil. basic outstanding shares, with current stock price of $32 per share. The company has the following information about the options/warrants:

Tranche Number of Shares (mil.) Exercise Price
Tranche 1 15 $ 5.00
Tranche 2 10 $ 25.00
Tranche 3 20 $ 30.00
Tranche 4 12 $ 35.00
Tranche 5 11 $ 47.00
Tranche 6 5 $ 55.00

What is the amount of ABC's LTM Earnings per share (LTM EPS)?

A.

1.34

B.

1.10

C.

2.12

D.

0.42

E.

0.88

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