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Question 1 of 18 Moving to another question will save this response. Question 1 Use the table for the question(s) below. Consider the following income

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Question 1

Use the table for the question(s) below. Consider the following income statement and other information:

Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
2019 2018
Total sales 610.1 578.3
Cost of sales (500.2) (481.9)
Gross profit 109.9 96.4
Selling, general, and administrative expenses (40.5) (39.0)
Research and development (24.6) (22.8)
Depreciation and amortization (3.6) (3.3)
Operating income 41.2 31.3
Other income --- ---
Earnings before interest and taxes (EBIT) 41.2 31.3
Interest income (expense) (25.1) (15.8)
Pre-tax income 16.1 15.5
Taxes (5.5) (5.3)
Net income 10.6 10.2
Price per share $16 $15
Shares 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

Luther's EBIT coverage ratio for the year ending December 31, 2018 is closest to:

1.64.

1.78.

2.19.

1.98.

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