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	$13	$11
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 _______.

	a.	11.60
	b.	16.00
	c.	12.51
	d.	14.25