Refer to the income statement above. Luthers P/E ratio in 2006 is the closest to _______.

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

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 admi trative 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