Question
Luther Corporation Consolidated Income Statement Year ended December 31 (in $millions) 2006 2005 Total sales 610.1 550.4550.4 Cost of sales (500.2) (384.7384.7 ) Gross profit
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $millions)
2006 | 2005 | |
Total sales | 610.1 | 550.4550.4 |
Cost of sales | (500.2) | (384.7384.7 ) |
Gross profit | 109.9 | 165.7165.7 |
Selling, general, and administrative expenses | (40.5) | (39.339.3 ) |
Research and development | (24.6) | (2323 ) |
Depreciation and amortization | (3.6) | (3.33.3 ) |
Operating income | 41.2 | 100.1100.1 |
Other income | minusminus | minusminus |
Earnings before interest and taxes (EBIT) | 41.2 | 100.1100.1 |
Interest income (expense) | (25.1) | (1515 ) |
Pretax income | 16.1 | 85.185.1 |
Taxes | (5.5) | (29.78529.785 ) |
Net income | 10.6 | 55.31555.315 |
Price per share | $16 | $15 |
Sharing outstanding (millions) | 10.2 | 8.0 |
Stock options outstanding (millions) | 0.3 | 0.2 |
Stockholders' Equity | 126.6 | 63.6 |
Total Liabilities and Stockholders' Equity | 533.1 | 386.7 |
Refer to the income statement above. Luther's operating margin for the year ending December 31, 2005 is closest to:
A.
9.099.09 %
B.
14.5514.55 %
C.
18.1918.19 %
D.
21.8221.82 %
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