Q

If in 2019 Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's Enterprise Value?

(Please use the financial statements above.)

A.

-$63.3 million

B.

$353.1 million

C.

$389.7 million

D.

$516.9 million

Use the table for questions 3 to 8 below. Consider the following financial statements: Luther Corporation Consolidated Balance Sheet December 31, 2019 and 2018 (in $ millions) 2019 2018 2019 2018 Assets Current Assets Cash 63.6 58.5 87.6 73.5 55.5 39.6 Liabilities and Stockholders' Equity Current Liabilities Accounts payable Notes payable/ short-term debt Current maturities of long-term debt Other current liabilities Total current liabilities 10.5 Accounts receivable 9.6 45.9 42.9 Inventories Other current assets 39.9 6.0 36.9 12.0 6.0 3.0 132.0 171.0 144.0 Total current assets -144.0 Long-Term Assets Land 66.6 62.1 239.7 168.9 Long-Term Liabilities Long-term debt Capital lease obligations Total Debt 91.5 109.5 119.1 99.6 239.7 168.9 Buildings Equipment Less accumulated depreciation Net property, plant, and equipment (56.1) (52.5) 22.8 22.2 239.1 200.7 Deferred taxes Other long-term liabilities Total long-term liabilities Total liabilities 60.0 63.0 262.5 406.5 191.1 323.1 42.0 Goodwill Other long-term assets Total long-term assets 362.1 242.7 Stockholders' Equity 126.6 63.6 Total liabilities and Stockholders' Equity Total Assets 533.1 386.7 533.1 386.7 2018 578.3 (481.9) 96.4 Luther Corporation Consolidated Income Statement Year ended December 31 (in $ millions) 2019 Total sales 610.1 Cost of sales (500.2) Gross profit 109.9 Selling, general, and administrative expenses (40.5) Research and development (24.6) Depreciation and amortization (3.6) Operating income 41.2 Other income Earnings before interest and taxes (EBIT) 41.2 Interest income (expense) (25.1) Pre-tax income 16.1 Taxes (5.5) Net income 10.6 Dividends Paid 5.1 Price per Share $16 Shares outstanding (millions) 102 Stock options outstanding (millions) 0.3 (39.0) (22.8) (3.3) 31.3 31.3 (15.8) 15.5 (5.3) 10.2 5.0 $15 8.0 0.2 Stockholders' Equity 126.6 63.6 Total Liabilities and Stockholders' Equity 533.1 386.7