See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp....

60.1K

Verified Solution

Question

Accounting

See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in 2016dash2019 as they were in 2015. What would Mydeco's EPS have been each year in this case?

QUESTION:

Year

2016

Revenue (millions)

$

Net Profit Margin

%

New Net Income (millions)

$

Shares Outstanding (millions)

New EPS

$

TABLE

20152015dash20192019

Financial Statement Data and Stock Price Data for Mydeco Corp.

(All data as of fiscal year end; in $ millions)

Income Statement

20152015

20162016

20172017

20182018

20192019

Revenue

404.3404.3

363.8363.8

424.6424.6

510.7510.7

604.1604.1

Cost of Goods Sold

( 188.3 )(188.3)

( 173.8 )(173.8)

( 206.2 )(206.2)

( 246.8 )(246.8)

( 293.4 )(293.4)

Gross Profit

216.0216.0

190.0190.0

218.4218.4

263.9263.9

310.7310.7

Sales and Marketing

( 66.7 )(66.7)

( 66.4 )(66.4)

( 82.8 )(82.8)

( 102.1 )(102.1)

( 120.8 )(120.8)

Administration

( 60.6 )(60.6)

( 59.1 )(59.1)

( 59.4 )(59.4)

( 66.4 )(66.4)

( 78.5 )(78.5)

Depreciation & Amortization

( 27.3 )(27.3)

( 27.0 )(27.0)

( 34.3 )(34.3)

( 38.4 )(38.4)

( 38.6 )(38.6)

EBIT

61.461.4

37.537.5

41.941.9

57.057.0

72.872.8

Interest Income (Expense)

( 33.7 )(33.7)

( 32.9 )(32.9)

( 32.2 )(32.2)

( 37.4 )(37.4)

( 39.4 )(39.4)

Pretax Income

27.727.7

4.64.6

9.79.7

19.619.6

33.433.4

Income Tax

( 9.7 )(9.7)

( 1.6 )(1.6)

( 3.4 )(3.4)

( 6.9 )(6.9)

( 11.7 )(11.7)

Net Income

18.018.0

3.03.0

6.36.3

12.712.7

21.721.7

Shares Outstanding (millions)

5555

5555

5555

5555

5555

Earnings per Share

$ 0.33$0.33

$ 0.05$0.05

$ 0.11$0.11

$ 0.23$0.23

$ 0.39$0.39

Balance Sheet

20152015

20162016

20172017

20182018

20192019

Assets

Cash

48.848.8

68.968.9

86.386.3

77.577.5

85.085.0

Accounts Receivable

88.688.6

69.869.8

69.869.8

76.976.9

86.186.1

Inventory

33.733.7

30.930.9

28.428.4

31.731.7

35.335.3

Total Current Assets

171.1171.1

169.6169.6

184.5184.5

186.1186.1

206.4206.4

Net Property, Plant & Equipment

245.3245.3

243.3243.3

309.0309.0

345.6345.6

347.0347.0

Goodwill & Intangibles

361.7361.7

361.7361.7

361.7361.7

361.7361.7

361.7361.7

Total Assets

778.1778.1

774.6774.6

855.2855.2

893.4893.4

915.1915.1

Liabilities & Stockholders' Equity

Accounts Payable

18.718.7

17.917.9

22.022.0

26.826.8

31.731.7

Accrued Compensation

6.76.7

6.46.4

7.07.0

8.18.1

9.79.7

Total Current Liabilities

25.425.4

24.324.3

29.029.0

34.934.9

41.441.4

Long-Term Debt

500.0500.0

500.0500.0

575.0575.0

600.0600.0

600.0600.0

Total Liabilities

525.4525.4

524.3524.3

604.0604.0

634.9634.9

641.4641.4

Stockholders' Equity

252.7252.7

250.3250.3

251.2251.2

258.5258.5

273.7273.7

Total Liabilities & Stockholders' Equity

778.1778.1

774.6774.6

855.2855.2

893.4893.4

915.1915.1

Statement of Cash Flows

20152015

20162016

20172017

20182018

20192019

Net Income

18.018.0

3.03.0

6.36.3

12.712.7

21.721.7

Depreciation & Amortization

27.327.3

27.027.0

34.334.3

38.438.4

38.638.6

Change in Accounts Receivable

3.93.9

18.818.8

0.00.0

( 7.1 )(7.1)

( 9.2 )(9.2)

Change in Inventory

( 2.9 )(2.9)

2.82.8

2.52.5

( 3.3 )(3.3)

( 3.6 )(3.6)

Change in Pay. & Accrued Comp.

2.22.2

( 1.1 )(1.1)

4.74.7

5.95.9

6.56.5

Cash from Operations

48.548.5

50.550.5

47.847.8

46.646.6

54.054.0

Capital Expenditures

( 25.0 )(25.0)

( 25.0 )(25.0)

( 100.0 )(100.0)

( 75.0 )(75.0)

( 40.0 )(40.0)

Cash from Investing Activ.

( 25.0 )(25.0)

( 25.0 )(25.0)

( 100.0 )(100.0)

( 75.0 )(75.0)

( 40.0 )(40.0)

Dividends Paid

( 5.4 )(5.4)

( 5.4 )(5.4)

( 5.4 )(5.4)

( 5.4 )(5.4)

( 6.5 )(6.5)

Sale (or Purchase) of Stock

-

-

-

-

-

Debt Issuance (Pay Down)

-

-

75.075.0

25.025.0

-

Cash from Financing Activ.

( 5.4 )(5.4)

( 5.4 )(5.4)

69.669.6

19.619.6

( 6.5 )(6.5)

Change in Cash

18.118.1

20.120.1

17.417.4

( 8.8 )(8.8)

7.57.5

Mydeco Stock Price

$ 7.92$7.92

$ 3.30$3.30

$ 5.25$5.25

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students