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See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydecos costs and expenses had been the same fraction of
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. Suppose Mydecos costs and expenses had been the same fraction of revenues in 20202023 as they were in 2019. What would Mydecos EPS have been each year in this case?
\begin{tabular}{lrrrrr} Balance Sheet & 2019 & 2020 & 2021 & 2022 & 2023 \\ \hline 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 \\ & 778.1 & 774.6 & 855.2 & 893.4 & 915.1 \end{tabular} \begin{tabular}{lrrrrr} Mydeco Corp. 2019-2023 & \multicolumn{5}{c}{ (All data as of fiscal year end; \$ in millions) } \\ \hline Income Statement & 2019 & 2020 & \multicolumn{1}{c}{2021} & 2022 & \multicolumn{1}{c}{2023} \\ \hline Revenue & 404.3 & 363.8 & 424.6 & 510.7 & \multicolumn{1}{c}{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) & 55.0 & 55.0 & 55.0 & 55.0 & 55.0 \\ Earnings per share & $0.33 & $0.05 & $0.11 & $0.23 & $0.39 \end{tabular} \begin{tabular}{lrrrrr} Mydeco Corp. 2019-2023 & \multicolumn{5}{c}{ (All data as of fiscal year end; \$n millions) } \\ \hline Balance Sheet & 2019 & 2020 & 2021 & 2022 & \multicolumn{2}{c}{2023} \\ \hline 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 \\ 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 & 2019 & 2020 & 2021 & 2022 & 2023 \\ \hline Net Income & 18.0 & 3.0 & 6.3 & 12.7 & 21.7 \\ Depreciation \& Amortization & 27.3 & 27.0 & 34.3 & 38.4 & 38.6 \\ Chy. In Accounts Receivable & 3.9 & 18.8 & 0 & -7.1 & -9.2 \\ Chy. In Inventory & -2.9 & 2.8 & 2.5 & -3.3 & -3.6 \\ Chy. In Payables \& 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 Activities & -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 & 0 & 0 & 0 & 0 & 0 \\ Debt Issuance (Pay Down) & 0 & 0 & 75.0 & 25.0 & 0 \\ Cash from Financing Activities & -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 \\ \hline \end{tabular}Step by Step Solution
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