10,13,15,16

x) 13. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Ua. By what percentage did Mydeco's revenues grow each year from 2013 to 2016? b. By what percentage did net income grow each year? c. Why might the growth rates of revenues and net income differ? 14. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco repurchases 2.3 million shares each year from 2013 to 2016. What would its earnings per share be in years 20132016? (Assume Mydeco pays for the shares using its available cash and that Mydeco earns no interest on its cash balances.) |X1|15.) See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12.3 million at the end of 2013, and this equipment was depreciated by $4.1 million per year in 2014, 2015, and 2016. Given Mydeco's tax rate of 35%, what impact would this additional purchase have had on Mydeco's net income in years 20132016? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances.) EX 16. See Table 2.5 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 20132016 as they were in 2012. What would Mydeco's EPS have been each year in this case? MFL MEL 10. 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? problems Problems 87 87 TABLE 2.5 2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp. 2016 602.6 (295.8) 306.8 (121.1) (79.8) (40.1) (All data as of fiscal year end; in $ million) 2012 2013 2014 2015 401.9 361. 6 4 29.6 513.6 (192.1) (175.4) (207.1) (248.3) 209.8 186.2 222.5 265.3 (65.0) (64.4) (84.3) (104.9) (61.8) (57.1) (59.0) (66.9) (27.5) (26.3) (32.5) (38.3) 555 38.4 46.7 55.2 (32.4) (31.8) (32.0) (37.0) 23.1 6.6 14.7 18.2 (8.1) (2.3) (5.1) (6.4) 15.0 4.3 9.6 11.8 56.8 56.8 56.8 56.8 $0.26 $0.08 $0.17 $0.21 2012 2013 2014 2015 65.8 (40.9) 24.9 (8.7) 16.2 56.8 $0.29 2016 49.4 87.6 33.5 170.5 244.3 3655 780.3 68.0 70.6 32.2 170.8 243.3 365.5 779.6 91.7 69.3 27.3 188.3 306.1 365.5 859.9 80.4 77.4 30.2 188.0 349.6 365.5 903.1 83.6 84.2 35.8 203.6 347.9 365.5 917.0 Mydeco Corp. 2012-2016 Income Statement Revenue Cost of Goods Sold Gross Profit Sales and Marketing Administration Depreciation & Amortizacion EBIT Interest Income (Expense) Pretax Income Income Tax Net Income Shares outstanding (millions) Earnings per share Balance Sheet Asets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equip. Goodwill & Intangibles Total Assets Liabilities - Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities long-term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Chg. in Accounts Receivable Chg. in Inventory Chg, in Payables & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activities Dividends Paid Sale (or purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activities Change in Cash Mydeco Stock Price 18.8 7.6 26.4 498.9 525.3 255.0 780.3 18.8 6.3 25.1 498.9 524 255.6 779.6 22.4 7.5 29.9 572.2 602.1 257.8 859.9 27.1 7.7 34.8 597.5 632.3 270.8 903.1 30.3 9.4 39.7 597.5 637.2 279.8 917.0 2012 15.0 27.5 3.9 (2.9) 1.7 45.2 (26.6) (26.6) (5.2) 2013 4.3 26.3 17.0 1.3 (1.3) 47.6 (23.8) (23.8) (5.2) 2014 9.6 32.5 1.3 4.9 4.8 53.1 (97.5) (97.5) (5.2) 2015 11.8 38.3 (8.1) (2.9) 4.9 44.0 (75.4) (75.4) (5.2) 2016 16.2 40.1 (6.8) (5.6) 4.9 48.8 (40.0) (40.0) (5.6) (5.2) 13,4 $7.02 6.2) 18.6 $3.55 73.3 68.1 23.7 $5.86 25.3 20.1 (11.3) $8.33 65.6) 3.2 $11.57 x) 13. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Ua. By what percentage did Mydeco's revenues grow each year from 2013 to 2016? b. By what percentage did net income grow each year? c. Why might the growth rates of revenues and net income differ? 14. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco repurchases 2.3 million shares each year from 2013 to 2016. What would its earnings per share be in years 20132016? (Assume Mydeco pays for the shares using its available cash and that Mydeco earns no interest on its cash balances.) |X1|15.) See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12.3 million at the end of 2013, and this equipment was depreciated by $4.1 million per year in 2014, 2015, and 2016. Given Mydeco's tax rate of 35%, what impact would this additional purchase have had on Mydeco's net income in years 20132016? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances.) EX 16. See Table 2.5 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 20132016 as they were in 2012. What would Mydeco's EPS have been each year in this case? MFL MEL 10. 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? problems Problems 87 87 TABLE 2.5 2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp. 2016 602.6 (295.8) 306.8 (121.1) (79.8) (40.1) (All data as of fiscal year end; in $ million) 2012 2013 2014 2015 401.9 361. 6 4 29.6 513.6 (192.1) (175.4) (207.1) (248.3) 209.8 186.2 222.5 265.3 (65.0) (64.4) (84.3) (104.9) (61.8) (57.1) (59.0) (66.9) (27.5) (26.3) (32.5) (38.3) 555 38.4 46.7 55.2 (32.4) (31.8) (32.0) (37.0) 23.1 6.6 14.7 18.2 (8.1) (2.3) (5.1) (6.4) 15.0 4.3 9.6 11.8 56.8 56.8 56.8 56.8 $0.26 $0.08 $0.17 $0.21 2012 2013 2014 2015 65.8 (40.9) 24.9 (8.7) 16.2 56.8 $0.29 2016 49.4 87.6 33.5 170.5 244.3 3655 780.3 68.0 70.6 32.2 170.8 243.3 365.5 779.6 91.7 69.3 27.3 188.3 306.1 365.5 859.9 80.4 77.4 30.2 188.0 349.6 365.5 903.1 83.6 84.2 35.8 203.6 347.9 365.5 917.0 Mydeco Corp. 2012-2016 Income Statement Revenue Cost of Goods Sold Gross Profit Sales and Marketing Administration Depreciation & Amortizacion EBIT Interest Income (Expense) Pretax Income Income Tax Net Income Shares outstanding (millions) Earnings per share Balance Sheet Asets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equip. Goodwill & Intangibles Total Assets Liabilities - Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities long-term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Chg. in Accounts Receivable Chg. in Inventory Chg, in Payables & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activities Dividends Paid Sale (or purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activities Change in Cash Mydeco Stock Price 18.8 7.6 26.4 498.9 525.3 255.0 780.3 18.8 6.3 25.1 498.9 524 255.6 779.6 22.4 7.5 29.9 572.2 602.1 257.8 859.9 27.1 7.7 34.8 597.5 632.3 270.8 903.1 30.3 9.4 39.7 597.5 637.2 279.8 917.0 2012 15.0 27.5 3.9 (2.9) 1.7 45.2 (26.6) (26.6) (5.2) 2013 4.3 26.3 17.0 1.3 (1.3) 47.6 (23.8) (23.8) (5.2) 2014 9.6 32.5 1.3 4.9 4.8 53.1 (97.5) (97.5) (5.2) 2015 11.8 38.3 (8.1) (2.9) 4.9 44.0 (75.4) (75.4) (5.2) 2016 16.2 40.1 (6.8) (5.6) 4.9 48.8 (40.0) (40.0) (5.6) (5.2) 13,4 $7.02 6.2) 18.6 $3.55 73.3 68.1 23.7 $5.86 25.3 20.1 (11.3) $8.33 65.6) 3.2 $11.57