Question
See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction
See Table 2.5 LOADING... 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 2016dash2019 as they were in 2015. What would Mydeco's EPS have been each year in this case?
QUESTION:
Year |
|
2016 |
|
Revenue (millions) | $ |
|
|
Net Profit Margin |
|
| % |
New Net Income (millions) | $ |
|
|
Shares Outstanding (millions) |
|
|
|
New EPS | $ |
|
|
TABLE
20152015dash20192019 Financial Statement Data and Stock Price Data for Mydeco Corp. | |||||
(All data as of fiscal year end; in $ millions) | |||||
Income Statement | 20152015 | 20162016 | 20172017 | 20182018 | 20192019 |
Revenue | 404.3404.3 | 363.8363.8 | 424.6424.6 | 510.7510.7 | 604.1604.1 |
Cost of Goods Sold | ( 188.3 )(188.3) | ( 173.8 )(173.8) | ( 206.2 )(206.2) | ( 246.8 )(246.8) | ( 293.4 )(293.4) |
Gross Profit | 216.0216.0 | 190.0190.0 | 218.4218.4 | 263.9263.9 | 310.7310.7 |
Sales and Marketing | ( 66.7 )(66.7) | ( 66.4 )(66.4) | ( 82.8 )(82.8) | ( 102.1 )(102.1) | ( 120.8 )(120.8) |
Administration | ( 60.6 )(60.6) | ( 59.1 )(59.1) | ( 59.4 )(59.4) | ( 66.4 )(66.4) | ( 78.5 )(78.5) |
Depreciation & Amortization | ( 27.3 )(27.3) | ( 27.0 )(27.0) | ( 34.3 )(34.3) | ( 38.4 )(38.4) | ( 38.6 )(38.6) |
EBIT | 61.461.4 | 37.537.5 | 41.941.9 | 57.057.0 | 72.872.8 |
Interest Income (Expense) | ( 33.7 )(33.7) | ( 32.9 )(32.9) | ( 32.2 )(32.2) | ( 37.4 )(37.4) | ( 39.4 )(39.4) |
Pretax Income | 27.727.7 | 4.64.6 | 9.79.7 | 19.619.6 | 33.433.4 |
Income Tax | ( 9.7 )(9.7) | ( 1.6 )(1.6) | ( 3.4 )(3.4) | ( 6.9 )(6.9) | ( 11.7 )(11.7) |
Net Income | 18.018.0 | 3.03.0 | 6.36.3 | 12.712.7 | 21.721.7 |
Shares Outstanding (millions) | 5555 | 5555 | 5555 | 5555 | 5555 |
Earnings per Share | $ 0.33$0.33 | $ 0.05$0.05 | $ 0.11$0.11 | $ 0.23$0.23 | $ 0.39$0.39 |
Balance Sheet | 20152015 | 20162016 | 20172017 | 20182018 | 20192019 |
Assets | |||||
Cash | 48.848.8 | 68.968.9 | 86.386.3 | 77.577.5 | 85.085.0 |
Accounts Receivable | 88.688.6 | 69.869.8 | 69.869.8 | 76.976.9 | 86.186.1 |
Inventory | 33.733.7 | 30.930.9 | 28.428.4 | 31.731.7 | 35.335.3 |
Total Current Assets | 171.1171.1 | 169.6169.6 | 184.5184.5 | 186.1186.1 | 206.4206.4 |
Net Property, Plant & Equipment | 245.3245.3 | 243.3243.3 | 309.0309.0 | 345.6345.6 | 347.0347.0 |
Goodwill & Intangibles | 361.7361.7 | 361.7361.7 | 361.7361.7 | 361.7361.7 | 361.7361.7 |
Total Assets | 778.1778.1 | 774.6774.6 | 855.2855.2 | 893.4893.4 | 915.1915.1 |
Liabilities & Stockholders' Equity | |||||
Accounts Payable | 18.718.7 | 17.917.9 | 22.022.0 | 26.826.8 | 31.731.7 |
Accrued Compensation | 6.76.7 | 6.46.4 | 7.07.0 | 8.18.1 | 9.79.7 |
Total Current Liabilities | 25.425.4 | 24.324.3 | 29.029.0 | 34.934.9 | 41.441.4 |
Long-Term Debt | 500.0500.0 | 500.0500.0 | 575.0575.0 | 600.0600.0 | 600.0600.0 |
Total Liabilities | 525.4525.4 | 524.3524.3 | 604.0604.0 | 634.9634.9 | 641.4641.4 |
Stockholders' Equity | 252.7252.7 | 250.3250.3 | 251.2251.2 | 258.5258.5 | 273.7273.7 |
Total Liabilities & Stockholders' Equity | 778.1778.1 | 774.6774.6 | 855.2855.2 | 893.4893.4 | 915.1915.1 |
Statement of Cash Flows | 20152015 | 20162016 | 20172017 | 20182018 | 20192019 |
Net Income | 18.018.0 | 3.03.0 | 6.36.3 | 12.712.7 | 21.721.7 |
Depreciation & Amortization | 27.327.3 | 27.027.0 | 34.334.3 | 38.438.4 | 38.638.6 |
Change in Accounts Receivable | 3.93.9 | 18.818.8 | 0.00.0 | ( 7.1 )(7.1) | ( 9.2 )(9.2) |
Change in Inventory | ( 2.9 )(2.9) | 2.82.8 | 2.52.5 | ( 3.3 )(3.3) | ( 3.6 )(3.6) |
Change in Pay. & Accrued Comp. | 2.22.2 | ( 1.1 )(1.1) | 4.74.7 | 5.95.9 | 6.56.5 |
Cash from Operations | 48.548.5 | 50.550.5 | 47.847.8 | 46.646.6 | 54.054.0 |
Capital Expenditures | ( 25.0 )(25.0) | ( 25.0 )(25.0) | ( 100.0 )(100.0) | ( 75.0 )(75.0) | ( 40.0 )(40.0) |
Cash from Investing Activ. | ( 25.0 )(25.0) | ( 25.0 )(25.0) | ( 100.0 )(100.0) | ( 75.0 )(75.0) | ( 40.0 )(40.0) |
Dividends Paid | ( 5.4 )(5.4) | ( 5.4 )(5.4) | ( 5.4 )(5.4) | ( 5.4 )(5.4) | ( 6.5 )(6.5) |
Sale (or Purchase) of Stock | - | - | - | - | - |
Debt Issuance (Pay Down) | - | - | 75.075.0 | 25.025.0 | - |
Cash from Financing Activ. | ( 5.4 )(5.4) | ( 5.4 )(5.4) | 69.669.6 | 19.619.6 | ( 6.5 )(6.5) |
Change in Cash | 18.118.1 | 20.120.1 | 17.417.4 | ( 8.8 )(8.8) | 7.57.5 |
Mydeco Stock Price | $ 7.92$7.92 | $ 3.30$3.30 | $ 5.25$5.25 |
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