Assuming That Luther Has No Convertible Bonds Outstanding,then for the Year

question 95

Multiple Choice

Assuming that Luther has no convertible bonds outstanding,then for the year ending December 31,2009 Luther's diluted earnings per share are closest to:

• A)$1.01
• B)$1.04
• C)$1.28
• D)$1.33

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Long-term Investment

Investments held by an entity for an extended period, typically more than one year, such as bonds, stocks, or real estate.

Equity Method

A method where an investor recognizes its share of the profits and losses of the investee company it has invested in, proportionate to its ownership percentage.

Cost Method

An accounting method used to value certain investments or transactions at their original purchase cost, without reflecting subsequent changes in market value.