Luther Corporation

Consolidated Balance Sheet

December 31, 2009 and 2008 (in $ millions)

Assets	2009	2008		Liabilities and Stockholders' Equity	2009	2008
Current Assets				Current Liabilities
Cash	63.6	58.5		Accounts payable	87.6	73.5
Accounts receivable	55.5	39.6		Notes payable / short-term debt	10.5	9.6
Inventories	45.9	42.9		Current maturities of long-term debt	39.9	36.9
Other current assets	6.0	3.0		Other current liabilities	6.0	12.0
Total current assets	171.0	144.0		Total current liabilities	144.0	132.0
Long-Term Assets				Long-Term Liabilities
Land	66.6	62.1		Long-term debt	239.7	168.9
Buildings	109.5	91.5		Capital lease obligations	---	---
Equipment	119.1	99.6		Total Debt	239.7	168.9
Less accumulated depreciation	(56.1)	(52.5)		Deferred taxes	22.8	22.2
Net property, plant, and equipment	239.1	200.7		Other long-term liabilities	---	---
Goodwill	60.0	--		Total long-term liabilities	262.5	191.1
Other long-term assets	63.0	42.0		Total liabilities	406.5	323.1
Total long-term assets	362.1	242.7		Stockholders' Equity	126.6	63.6
Total Assets	533.1	386.7		Total liabilities and Stockholders' Equity	533.1	386.7

Consider the Luther Corporation income statement, balance sheet and other information :

Luther's return on equity (ROE) for the year ending December 31, 2009 is closest to:

a. 2.0%

b. 6.5%

c. 8.4%

d. 12.7%

Assuming that Luther has no convertible bonds outstanding, then for the year ending December 31, 2009 Luther's diluted earnings per share are closest to:

a. $1.01

b. $1.04

c. $1.28

d. $1.33

Luther's Operating Margin for the year ending Dec 31, 2008 is closest to:

a. 0.5%

b. 0.7%

c. 5.4%

d.6.8%

When using the book value of equity, the debt to equity ratio for Luther in 2009 is closest to:

a. 0.43

b. 2.29

c. 2.98

d.3.57