The following information is extracted from the annual report of Lands End (in millions, except per share

The following information is extracted from the annual report of Lands’ End (in millions, except per share data)

Required:
a. Calculate and graph the following separate relations:
(1) Net income per share (EPS) and market price per share
(2) Cash from operations per share and market price per share
(3) Net cash flow per share and market price per share
(4) Free cash flow per share and market price per share
b. Which of the measures extracted from the annual report appear to best explain changes in stock price? Discuss the implications of this for stock valuation.
c. Choose another company and prepare similar graphs. Do your observations from Lands’ Endgeneralize?

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Fiscal year Year 9 Year 8 Year 7 Year 6 Year 5 Year 4 Net income Cash from (used by) operations Net cash flow Free cash flow* Market price per share (end of fiscal year) 32.375 39.312 Common shares outstanding $312 $64.2 51.0 $30.6 $36 $43.7 74.3 (26.9) 21.8 414 34.5 22.4 0.03 (865) 75.7 118 16) (12) 27.5 (74.6) 103.3 27.5 24 5.1 28.375 14.625 16.125 24.375 30.1 31.0 32.4 33.7 34.8 35.9 Defined as Cash low from operations Capital expenditures Dividends.