Question: Can anyone please help with this question? Please and thank you! See Table 2.5 LOADING... showing financial statement data and stock price data for Mydeco
Can anyone please help with this question? Please and thank you!
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
2013-2016
as they were in
2012.
What would Mydeco's EPS have been each year in this case?
Calculate the new EPS for
2013-2016
below:(Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)
| Year |
| 2013 |
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| Revenue (millions) | $ |
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| Net Profit Margin |
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| % |
| New Net Income (millions) | $ |
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| Shares Outstanding (millions) |
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| New EPS | $ |
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| 2014 |
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| 2016 |
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| 2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp. |
| |||||
| (All data as of fiscal year end; in $ millions) | ||||||
| Income Statement | 2012 | 2013 | 2014 | 2015 | 2016 | |
| Revenue | 404.3 | 363.8 | 424.6 | 510.7 | 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 | (6.9) | (1.2) | (2.4) | (4.9) | (8.4) | |
| Net Income | 20.8 | 3.4 | 7.3 | 14.7 | 25.0 | |
| Shares Outstanding (millions) | 55 | 55 | 55 | 55 | 55 | |
| Earnings per Share | $0.38 | $0.06 | $0.13 | $0.27 | $0.45 | |
| Balance Sheet | 2012 | 2013 | 2014 | 2015 | 2016 | |
| Assets | ||||||
| Cash | 48.8 | 69.3 | 87.7 | 80.9 | 91.7 | |
| 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 | 170.0 | 185.9 | 189.5 | 213.1 | |
| Net Property, Plant & Equipment | 245.3 | 243.3 | 309.0 | 345.6 | 347.0 | |
| Goodwill & Intangibles | 361.7 | 361.7 | 361.7 | 361.7 | 361.7 | |
| Total Assets | 778.1 | 775.0 | 856.6 | 896.8 | 921.8 | |
| 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 | |
| Total 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 | 250.7 | 252.6 | 261.9 | 280.4 | |
| Total Liabilities & Stockholders' Equity | 778.1 | 775.0 | 856.6 | 896.8 | 921.8 | |
| Statement of Cash Flows | 2012 | 2013 | 2014 | 2015 | 2016 | |
| Net Income | 20.8 | 3.4 | 7.3 | 14.7 | 25.0 | |
| Depreciation & Amortization | 27.3 | 27.0 | 34.3 | 38.4 | 38.6 | |
| Change in Accounts Receivable | 3.9 | 18.8 | 0.0 | (7.1) | (9.2) | |
| Change in Inventory | (2.9) | 2.8 | 2.5 | (3.3) | (3.6) | |
| Change in Pay. & Accrued Comp. | 2.2 | (1.1) | 4.7 | 5.9 | 6.5 | |
| Cash from Operations | 51.3 | 50.9 | 48.8 | 48.6 | 57.3 | |
| Capital Expenditures | (25.0) | (25.0) | (100.0) | (75.0) | (40.0) | |
| Cash from Investing Activ. | (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 | - | - | - | - | - | |
| Debt Issuance (Pay Down) | - | - | 75.0 | 25.0 | - | |
| Cash from Financing Activ. | (5.4) | (5.4) | 69.6 | 19.6 | (6.5) | |
| Change in Cash | 20.9 | 20.5 | 18.4 | (6.8) | 10.8 | |
| Mydeco Stock Price | $7.92 | $3.30 | $5.25 | $8.71 | $10.89 | |
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