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Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) OtherincomeEarningsbeforeinterestandtaxes(EBIT)Interestincome(expense)PretaxincomeTaxesNetincomePricepershareSharingoutstanding(millions)Stockoptionsoutstanding(millions)StockholdersEquityTotalLiabilitiesandStockholdersEquity533.141.2(25.1)16.1(5.5)10.6$1610.20.3126.6386.7136.4(14.6)121.8(42.63)79.17$158.00.263.6 Refer to the income statement above. Luther's operating margin for the year

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Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) OtherincomeEarningsbeforeinterestandtaxes(EBIT)Interestincome(expense)PretaxincomeTaxesNetincomePricepershareSharingoutstanding(millions)Stockoptionsoutstanding(millions)StockholdersEquityTotalLiabilitiesandStockholdersEquity533.141.2(25.1)16.1(5.5)10.6$1610.20.3126.6386.7136.4(14.6)121.8(42.63)79.17$158.00.263.6 Refer to the income statement above. Luther's operating margin for the year ending December 31,2005 is closest to: A. 11.84% B. 18.94% C. 23.67% D. 28.41% paid if the company pays a $5 dividend? A. $4.64 B. $3.1 C. $3.87 D. $5.42 What is the present value ( PV) of $40,000 received twenty-five years from now, assuming the interest rate is 6% per year? A. $26,000 B. $16,310 C. $9,320 D. $7,922 A. Yes, because the investment will yield $29,920 more than putting the money in a bank. B. Yes, because the investment will yield $33,660 more than putting the money in a bank. C. No, because the investment will yield $37,400 less than putting the money in a bank. D. Yes, because the investment will yield $37,400 more than putting the money in a bank. AOS Industries Statement of Cash Flows for 2008 Operating activities \begin{tabular}{cc} Net Income & 3.2 \\ Depreciation and amortization & 1.4 \\ Cash effect of changes in & \\ Accounts receivable & 2.1 \\ Accounts payable & 1.1 \\ Inventory & 0.8 \\ Cash from operatingactivities & 2.8 \\ Investment activities & \\ Capital expenditures \\ Acquisitions and other investing activity & 2.2 \\ \hline \end{tabular} Consider the above statement of cash flows. What were AOS Industries' major means of raising money in 2008? A. from investment activities B. from its operations C. by sale of stock D. by issuing debt

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