Question
See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydeco's PE ratio each year from 2015 to
See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydeco's PE ratio each year from 2015 to 2019 . In which year was it the highest? b. What was Mydeco's Enterprise Value to EBITDA ratio each year? In which year was it the highest? c. What might explain the differing time pattern of the two valuation ratios? Question content area bottom Part 1 a. Compute Mydeco's PE ratio each year from 2015 to 2019. Calculate the PE ratio for 2009-2013 below:(Round to two decimal places.) Year 2015 Price per Share $ Earnings per Share $ PE Ratio
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 55 55 55 55 Earnings per share $0.33 $0.05 $0.11 $0.23 $0.39 Balance Sheet 2015 2016 2017 2018 2019 Assets 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. 245.3 243.3 309.0 345.6 347.0 Goodwill & Intangibles 361.7 361.7 361.7 361.7 361.7 Total Assets 778.1 774.6 855.2 893.4 915.1 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 & Stockholders' Equity 778.1 774.6 855.2 893.4 915.1 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 (7.1) (9.2) Chg. in Inventory (2.9) 2.8 2.5 (3.3) (3.6) Chg. in Pay. & Accrued Comp. 2.2 (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 Activ. (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 Activ. (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 $8.71 $10.89
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started