Use the Table for the Question(s) Below

question 7

Multiple Choice

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

-For the year ending December 31,2006 Luther's earnings per share are closest to:

• A) $1.01
• B) $1.04
• C) $1.58
• D) $4.04

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Definitions:

Securities Offered

Financial instruments such as stocks, bonds, or options that are made available for sale to investors.

Direct Cash

Cash transactions that involve the immediate transfer of money for goods or services, without any delay in payment.

IPO Underpricing

The phenomenon where shares of a company are sold at a lower price during the initial public offering than the price at which they subsequently trade in the open market.

Offering Price

The price at which shares of a company are initially made available for purchase during an initial public offering or other issuance.