See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. By how
Question:
a. By how much did Mydeco increase its debt from 2009 to 2013?
b. What was Mydecos EBITDA/Interest coverage ratio in 2009 and 2013? Did its coverage ratio ever fall below 2?
c. Overall, did Mydecos ability to meet its interest payments improve or decline over this period?
Table continue
TABLE 2.5 2009-2013 Financial Statement Data and Stock Price Data for Mydeco Corp Mydeco Corp. 2009-2013 Statement of Cash Flows Net Income Depreciation & Amortization Chg. in Accounts Receivable Chg. in Inventory Chg. in Payables & Accrued Com (All data as of fiscal year end; in S million) 2009 18.0 27.3 2010 3.0 27.0 18.8 2.8 2011 2012 12.7 38.4 2013 21.7 38.6 6.3 34.3 (0.0) 2.5 4.7 47.8 (25.0) (25.0 (100.0) (75.0) 40.0) (25.0) (25.0 (100.0 (75.0) 40.0) (5.4) (2.9) 2.2 48.5 (3.3) 5.9 46.6 3.6) 6.5 54.0 Cash from Operations Capital Expenditures 50.5 Dividends Paid Sale (or purchase) of stock (5.4) (5.4) (5.4) 6.5) Cash from Financing Activities Change in Cash Mydeco Stock Price 75.0 69.6 17.4 $7.92 $3.30 $5.25 $8.71 $10.89 25.0 19.6 (8.8) (5.4) 18.1 (5.4) 20.1 (6.5) 7.5
Step by Step Answer:
a Mydeco increased its debt from 500 million in 2009 to 600 million in 2013 by ...View the full answer
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Corporate Finance questions
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. What is Mydecos market capitalization at the end of each year? b. What is Mydecos market-to-book ratio at the...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydecos PE ratio each year from 2009 to 2013. In which year was it the highest? b. What was Mydecos...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydecos ROE each year from 2009 to 2013. b. Compute Mydecos ROA each year from 2009 to 2013. c. Which...
-
You are the cashier employed at Tastee Limited. On November 30, 2020, you started with a float of $6,500 and at the end of the business day your cash in the cash till were as follows: Notes Coins...
-
The chapter showed how analyzing a box spread is like a capital budgeting problem using the NPV approach. Consider the internal rate of return method of examining capital budgeting problems and...
-
Let \(X_{t}=W_{t}+u t\) and \(m_{t}^{X}=\inf _{s \leq t} X_{s}\). Prove that, for \(y <0, y
-
Figure P28.44 shows a very long wire that carries a current \(I\) in the \(z\) direction and is centered in the \(x y\) plane at the position \((0,0)\). The line integral of the magnetic field along...
-
Theory of constraints, throughput margin, and relevant costs. Nevada Industries manufactures electronic testing equipment. Nevada also installs the equipment at customers' sites and ensures that it...
-
6. 7. 8. If one of the diameters of the circle x + y-2x-6y+6=0 is a chord of another circle 'C', whose centre is at (2, 1), then its radius is Let Bi (i = 1, 2, 3) be three independent events in a...
-
Singh and Rajamani [25] provide data for a local wood manufacturer that wants to decrease material handling by changing from a process layout to a GT layout. It is considering installing a conveyor...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compare Mydecos accounts payable days in 2009 and 2013. b. Did this change in accounts payable days improve or...
-
See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. How did Mydecos book debt-equity ratio change from 2009 to 2013? b. How did Mydecos market debt-equity ratio...
-
Ronnie Armstrong went to a Food Lion store in Winnsboro with his mother, Tillie, to buy groceries. Three men in Food Lion uniforms approached Ronnie. One, Brown, had been in a fight with Ronnie two...
-
Aroon is a valuable employee for his company, and he will receive a significant bonus. His employer has asked him to consider moving to a new location in a different state within the company. His...
-
Gaspar Manufacturing produces a single product: a component for commercial agricultural machinery. The company uses absorption costing for external financial reporting purposes and variable costing...
-
Choose the default join type implemented, when only the keyword JOIN is specified? O LEFT OUTER JOIN O RIGHT OUTER JOIN OSELF JOIN O INNER JOIN
-
PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,120 units. The utilities and maintenance costs...
-
Sentry Solutions sells security systems for $771. Sentry sources security systems from Single Source, Inc., for a variable cost of $511 per unit. What is Sentry Solutions' contribution margin in...
-
Compute the derivative using derivative rules that have been introduced so far. y = cos(9 + 41)
-
Using the theoretical sampling strategy, how many samples of size 4 (n = 4) can be drawn from a population of size: (a) N = 5? (b) N = 8? (c) N = 16? (d) N = 50?
-
1. Using the expenditure approach, calculate the GOP of Canada in 2018 (fourth quarter}, using the data below. 2. What percentage of GOP is made up by each of the four sectors of the economy? 3. Why...
-
Explain the difference between the arithmetic average return you calculated in Problem 10a and the geometric average return you calculated in Problem 10b. Are both numbers useful? If so, explain why.
-
Calculate the 95% prediction intervals for the four different investments included in Figures (1) and(2). Small Stocks 22.05 S&P 500 11.74 Corporate Bonds 6.49 Treasury Bills 4.09 10 15 20 25 Average...
-
You are choosing between the four investments from Problem 13 and you want to be 95% certain that you do not lose more than 8% on your investment. Which investments should you choose?
-
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year 0 -$51 - $101 a. What are the IRRS of the two projects? Year 1...
-
(5) For each of the following sets with a binary operation, determine if it a group or not and explain why. If it is not a group, you should provide at least one of the properties which is not...
-
Solve 1. f(x) = ln(2x-1) 2. f(x)=(x-1) 5x3+x 3. f(x) = e+x = 3 4. f(x) = e 5. f(x)=(3x -2x+1) 6. f(x)=2x-2x+3 7. f(x)= 8. f(x) = 1 2x-1 1 (4x + x)
Study smarter with the SolutionInn App