Luther Corporation

Consolidated Income Statement

Year ended December 31 (in $millions)

	2006	2005
Total sales	610.1	564.9
Cost of sales	-500.2	-360.5
Gross profit	109.9	204.4
Selling, general, and administrative expenses	-40.5	-40.5
Research and development	-24.6	-23.5
Depreciation and amortization	-3.6	-3.4
Operating income	41.2	137
Other income	--	--
Earnings before interest and taxes (EBIT)	41.2	137
Interest income (expense)	-25.1	-14.3
Pretax income	16.1	122.7
Taxes	-5.5	-42.945
Net income	10.6	79.755
Price per share	$16	$15
Shares outstanding (millions)	10.2	8.0
Stockholders' Equity	126.6	63.6
Total Liabilities and Stockholders' Equity	533.1	386.7

Refer to the income statement above. Luthers P/E ratio in 2006 is the closest to:

1. 15.38
2. 16.00
3. 1.6
4. 4.25

10. In 2015 Luther can be described as ____________ company :

A) growth

B) value

C) overvalued

D) discount

11. How did Luthers return on assets change from 2015 to 2016?