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Coltonht Coltonht
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Use the table for the question(s) below.

Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
​20062005
Total sales610.1578.3
Cost of sales(500.2)(481.9)
Gross profit109.996.4
Selling, general, and
administrative expenses		(40.5)(39.0)
Research and development(24.6)(22.8)
Depreciation and amortization(3.6)(3.3)
Operating income41.231.3
Other income------
Earnings before interest and taxes (EBIT)41.231.3
Interest income (expense)(25.1)(15.8)
Pretax income16.115.5
Taxes(5.5)(5.3)
Net income10.610.2
​​​
Price per share$16$15
Shares outstanding (millions)10.28.0
Stock options outstanding (millions)0.30.2
​​​
Stockholders' Equity126.663.6
Total Liabilities and Stockholders' Equity533.1386.7


Refer to the income statement above.  Luther's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ending December 31, 2006 is closest to:

▸ $19.7 million

▸ $37.6 million

▸ $41.2 million

▸ $44.8 million
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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Curtis x.Curtis x.
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Coltonht Author
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You make an excellent tutor!
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