Luther Corporation Consolidated Income Statement Year ended December 31 in Smillions) 2006 610.1 -5002 109.9 2005 578.3 -481.9 96.4 Total sales Cost of sales Gross profit Selling, gonoral, and administrative expenses Research and development Depreciation and amortization Operating income Other income Earnings before interest and taxes (EBIT) Interest income (expense) Prelax income Taxes Net incomo - 40.5 - 24.6 - 3,6 41.2 - 390 -228 -33 31.3 41.2 - 25.1 16.1 -5.5 10.6 31.3 - 15.8 15 5 -5.3 10.2 Price por share $16 $15 Sharing outstanding (millions) 9.7 7.6 Stock options outstanding (milions) 02 0.1 Stockholders' Equity 126.6 636 Total Liabilities and Stockholders' Equity 533.1 386.7 Refer to the income statement above. Assuming that Luther has no convertible bonds outstanding, then for the year ending December 31, 2006 Luther's diluted earnings per share are closest to 2006 610.1 -500.2 109.9 2005 578.3 -481.9 96.4 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 - 40.5 -24.6 -3.6 41.2 - 39.0 -22.8 -3.3 31.3 41.2 - 25.1 16.1 -5.5 10.6 31.3 - 15.8 15.5 -5.3 10.2 . O A. $1.07 B. $0.54 O C. $0.86 D. $1.29