Problem 2: Biornet IncI which design, manufactures and markets reconstructive and trauma devices, reported earnings per share of $9.59 in 1993, on which it paid no dividends {it had revenues per share in 1993 of $2.91]. It had capital expenditures of $9.13 per share in 1993, and depreciation in the same year of $9.99 per share. The working capital was 59% of revenues in 1993 and 1was expected to remain at that level from 1994 to 1999, while earnings and revenues were expected to grow use. a year. The earnings growth rate was expected to decline linearly over the following ve years to a rate of 5% in 2993, Dming the high growth and transition periods, capital spending and depreciation were expected to grow at the sae rate of earnings, hut capital spending would be 129% of depreciation