2019 608.2 (289.2) 319.0 (124.9) (80.1) (40.2) 73.8 (38.5) 35.3 (12.4) 22.9 54.6 $0.42 2019 (Click on the following icon in order to copy its contents into a spreadsheet.) 2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) Income Statement 2015 2016 2017 2018 Revenue 404.5 359.2 420.5 508.2 Cost of Goods Sold (184.4) (169.7) (209.2) (247.2) Gross Profit 220.1 189.5 211.3 261.0 Sales and Marketing (67.4) (65.0) (82.9) (96.9) Administration (60.5) (57.3) (57.6) (67.1) Depreciation & Amortization (27.5) (27.4) (33.5) (37.5) EBIT 64.7 39.8 37.3 59.5 Interest Income (Expense) (35.2) (32.4) (31.8) (36.8) Pretax Income 29.5 7.4 5.5 22.7 Income Tax (10.3) (2.6) (1.9) (7.9) Net Income 19.2 4.8 3.6 14.8 Shares Outstanding (millions) 54.6 54.6 54.6 54.6 Earnings per Share $0.35 $0.09 $0.07 $0.27 Balance Sheet 2015 2016 2017 2018 Assets Cash 49.3 74.6 91.6 84.2 Accounts Receivable 89.4 70.1 68.2 76.2 Inventory 33.3 29.9 27.2 30.1 Total Current Assets 172.0 174.6 187.0 190.5 Net Property, Plant & Equipment 250.1 241.6 305.6 349.7 Goodwill & Intangibles 359.1 359.1 359.1 359.1 Total Assets 781.2 775.3 851.7 899.3 Liabilities & Stockholders' Equity Accounts Payable 17.6 19.2 23.7 27.7 Accrued Compensation 6.9 5.9 6.4 7.9 Total Current Liabilities 24.5 25.1 30.1 35.6 Long-Term Debt 500.6 500.6 574.4 599.0 Total Liabilities 525.1 525.7 604.5 634.6 Stockholders' Equity 256.1 249.6 247.2 264.7 Total Liabilities & Stockholders' Equity 781.2 775.3 851.7 899.3 Statement of Cash Flows 2015 2016 2017 2018 Net Income 19.2 4.8 3.6 14.8 Depreciation & Amortization 27.5 27.4 33.5 37.5 Change in Accounts Receivable 3.9 19.3 1.9 (8.0) Change in Inventory (2.9) 3.4 2.7 (2.9) Change in Pay. & Accrued Comp. 2.7 0.6 5.0 5.5 Cash from Operations 50.4 55.5 46.7 46.9 Capital Expenditures (26.6) (24.4) (97.7) (73.1) Cash from Investing Activ. (26.6) (24.4) (97.7) (73.1) Dividends Paid (5.8) (5.8) (5.8) (5.8) Sale (or Purchase) of Stock Debt Issuance (Pay Down) 73.8 24.6 Cash from Financing Activ. (5.8) (5.8) 68.0 18.8 Change in Cash 18.0 25.3 17.0 (7.4) Mydeco Stock Price $8.71 $3.39 $5.28 $9.08 88.3 87.8 35.1 211.2 344.8 359.1 915.1 30.4 9.4 39.8 599.0 638.8 276.3 915.1 2019 22.9 40.2 (11.6) (5.0) 4.2 50.7 (40.6) (40.6) (6.0) (6.0) 4.1 $9.11 See Table 2.5 E showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco repurchases 1.7 million shares each year from 2016 to 2019. What would be its earnings per share in 2019? (Assume Mydeco pays for the shares using its available cash and that Mydeco earns no interest on its cash balances.) (Select the best choice below.) O A. A repurchase does not impact earnings directly, so any change to EPS will come from a reduction in shares outstanding. 2019 shares outstanding = 54.6 million - 4x1.7 million = 47.8 million, EPS = $22.9 million / 47.8 million = 50.48. O B. A repurchase does not impact earnings directly, so any change to EPS will come from an increase in shares outstanding. 2019 shares outstanding = 54.6 million + 4x1.7 million = 52.9 million, EPS = $14.8 million / 52.9 million = $0.28. OC. A repurchase does not impact earnings directly, so any change to EPS will come from a reduction in shares outstanding. 2019 shares outstanding = 54.6 million - 4x1.7 million = 47.8 million, EPS = $14.8 million/47.8 million = 50.31. OD. A repurchase does not impact earnings directly, so any change to EPS will come from an increase in shares outstanding. 2019 shares outstanding = 54.6 million + 4x1.7 million = 52.9 million, EPS = $22.9 million / 52.9 million = $0.43