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

a. What is Mydeco’s market capitalization at the end of each year?

b. What is Mydeco’s market-to-book ratio at the end of each year?

c. What is Mydeco’s enterprise value at the end of each year?AppendixLO1

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TABLE 2.5 Mydeco Corp. 2015-2019 2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp.* (All data as of fiscal year end; in $ million) Income Statement 2015 2016 2017 2018 2019 Revenue 404.3 363.8 424.6 510.7 604.1 Cost of Goods Sold (188.3) (173.8) (206.2) (246.8) (293.4) Gross Profit 216.0 190.0 218.4 263.9 310.7 Sales and Marketing (66.7) (66.4) (82.8) (102.1) (120.8) Administration (60.6) (59.1) (59.4) (66.4) (78.5) Depreciation & Amortization (27.3) (27.0) (34.3) (38.4) (38.6) EBIT 61.4 37.5 41.9 57.0 72.8 Interest Income (Expense) (33.7) (32.9) (32.2) (37.4) (39.4) Pretax Income 27.7 4.6 9.7 19.6 33.4 Income Tax (9.7) (1.6) (3.4) (6.9) (11.7) Net Income 18.0 3.0 6.3 12.7 21.7 Shares outstanding (millions) 55.0 55.0 55.0 55.0 55.0 Earnings per share $0.33 $0.05 $0.11 $0.23 $0.39 Balance Sheet 2015 2016 2017 2018 2019 Auets Cash 48.8 68.9 86.3 77.5 85.0 Accounts Receivable 88.6 69.8 69.8 76.9 86.1 Inventory 33.7 30.9 28.4 31.7 35.3 Total Current Assets 171.1 169.6 184.5 186.1 206.4 Net Property, Plant & Equip. 245.3 243.3 309 345.6 347.0 Goodwill & Intangibles 361.7 361.7 361.7 361.7 361.7 Total Assets 778.11 774.6 855.2 893.4 915.1 Liabilities & Stockholders' Equity Accounts Payable 18.7 17.9 22.0 26.8 31.7 Accrued Compensation 6.7 6.4 7.0 8.1 9.7 Total Current Liabilities 25.4 24.3 29.0 34.9 41.4 Long-term Debt 500.0 500.0 575.0 600.0 600.0 Total Liabilities 525.4 524.3 604.0 634.9 641.4 Stockholders' Equity 252.7 250.3 251.2 258.5 273.7 Total Liabilities 778.1 774.6 855.2 893.4 915.1 & Stockholders' Equity Statement of Cash Flows 2015 2016 2017 2018 2019 Net Income 18.0 3.0 6.3 12.7 21.7 Depreciation & Amortization 27.3 27.0 34.3 38.4 38.6 Chg in Accounts Receivable. 3.9 18.8 (0.0) Chg in Inventory (29) 28 25 Ed (7.1) (9.2) (3.3) (3.6) Chg in Payables & Accrued Comp 22 (1.1) 4.7 5.9 6.5 Cash from Operations 48.5 50.5 47.8 46.6 54.0 Capital Expenditures (25.0) (25.0) (100.0) (75.0) (40.0) Cash from Investing Activities (25.0) (25.0) (100.0) (75.0) (40.0) Dividends Paid (5.4) (5.4) (5.4) (5.4) (6.5) Sale (or purchase) of stock Debt Issuance (Pay Down) 75.0 25.0 Cash from Financing Activities (5.4) (5.4) 69.6 19.6 (6.5) Change in Cash 18.1 20.1 17.4 (8.8) 7.5 Mydeco Stock Price $7.92 $3.30 $5.25 38.71 $10.89 *For simplicity, any limitations on the tax deductibility of interest are ignored.