'17. Consider the nancial statement data and stock price data for Mydeco Corp. Suppose Mydeco repurchases 2.2 million shares each year from 2015 to 2018. What would be its earnings per share in 2018? (Assume Mydeco pays for the shares using its available cash and that Mydeco earns no interest on its cash balances.) 4 Click the icon to view the nancial statement and stock price date. (Select the best choice below.) 0 A. Arepurchase does not impact eamlngs directly. so any change to EPS will come from a reduction in shares outstanding. 2018 sh O B. A repurchase does not impact earnings directly, so any change to EPS will come from an increase in shares outstanding. 2018 si 0 C. A repurchase does not impact earnings directly. so any change to EPS will come from a reduction in shares outstanding. 2018 sh O D. A repurchase does not impact earnings directly. so any change to EPS will come from an increase in shares outstanding. 2018 st 4: Data Table _____________________.___-- 20142018 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; In 5 million) Revenue 407.4 364.2 424.2 508.6 599.3 Gross Prot 215.2 136.5 213.9 265.9 301.7 Sales and Marketing (67.0) (64.9) (82.3) (104.6) (120.2) Administration (60.0) (58.7) (58.6) (64.5) (78.0) Depreciation & Amortization (27.1) (27.2) (34.4) (39.2) (37.5) EBIT 61.1 35.7 38.6 57.6 66.0 interest income (Expense) (33.2) (31.0) (30.4) (36.6) (41-0) Pretax Income 27.9 4.7 8.2 21.0 25.0 income Tax (9.3) (1.6) (2.9) (7.4) (8.8) Net income 18.1 3.1 5.3 13.6 16.2 Shares Outstanding (millions) 53.2 53.2 53.2 53.2 53.2 Earnings per Share $0.34 $0.06 $0.10 $0.26 $0.30 Balance Sheet 2014 2015 2016 2017 2018 Assets Cash 50.6 71.2 87.1 80.1 84.8 Accounts Receivable 89.3 70.6 69.1 77.2 87.5 inventory 33.7 29.6 27.8 32.6 34.9 Total Current Assets 173.6 171.4 184.0 189.9 207.2 Net Property, Plant & Equipment 241.8 247.1 305.5 346.5 344.2 Goodwiii & intangibles 365.5 365.5 365.5 365.5 365.5 Total Assets 780.9 784.0 855.0 901.9 916.9 Liabilities & Stockholders' Equity Accounts Payable 20.5 17.5 20.2 ' 27.2 32.9 Accrued Compensation 5.9 5.7 7.2 7.2 10.5 Total Current Liabilities 26.4 23.2 27.4 34.4 43.4 LongTerm Debt 504.1 504.1 580.6 607.3 607.3 Total Liabilities 530.5 527.3 608.0 641.7 650.7 Stockholders' Equity 250.4 256.7 247.0 260.2 266.2 Total Liabilities & Stockholders' 780.9 784.0 855.0 901.9 916.9 Equity Statement of Cash Flows 2014 201 5 2016 2017 2013 Net income 18.1 3.1 5.3 13.6 16.2 Depreciation & Amortization 27.1 27.2 34.4 39.2 37.5 Change in Accounts Receivable 3.9 18.7 1.5 (8.1) (10 3) Change in inventory (2.9) 4.1 1.8 (43) (2'3) Change in Pay. & Accrued Comp. 2.4 (3.2) 4.2 7.0 g, 0 Cash from Operations 48.6 49.9 47.2 45_9 50.1 Cash from investing Activ. (24.3) (23.2) (101 .7) (74.5) (38 6) Dividends Paid (6.1) (6.1) (6.1) (6 1) (6.8 Sale (or Purchase) of Stock , - - I I ) Debt issuance (Pay Down) - - 76 5 26 7 ' Change in cm 9 (16-1) (6.1) 70.4 20.6 (6.8) 8.2 20.6 15.9 7.0 Mydeco Stock Price $7 1 ( ) 4.7 . 7 $2.91 $5.87 $8.02 $9.21 MH