Consider the financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in

20152018

as they were in

2014.

What would Mydeco's EPS have been each year in this case?

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Part 1

Calculate the new EPS for

20152018

below. (Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)

Year

2015

Revenue (millions)

$

Net Profit Margin

%

New Net Income (millions)

$

Shares Outstanding (millions)

New EPS

Consider the financial statement data and stock price data for Mydeco Corp. Suppose Mydeco's costs and expenses had been the same fraction of revenues in

20152018

as they were in

2014.

What would Mydeco's EPS have been each year in this case?

LOADING...

Click the icon to view the financial statement and stock price data.

Question content area bottom

Part 1

Calculate the new EPS for

20152018

below. (Round dollar amounts and number of shares to one decimal place. Round percentage amount and the EPS to two decimal places.)

Year		2015
Revenue (millions)	$
Net Profit Margin			%
New Net Income (millions)	$
Shares Outstanding (millions)
New EPS

Income Statement 2014 2015 2016 2017 2018 Revenue 402.1 364.4 424.6 506.6 604.5 Cost of Goods Sold (184.0) (173.4) (209.6) (249.0) (296.7) Gross Profit 218.1 191.0 215.0 257.6 307.8 Sales and Marketing (68.1) (66.5) (81.1) (105.8) (118.3) Administration (59.2) (57.6) (60.7) (66.3) (78.4) Depreciation & Amortization (26.6) (26.5) (32.4) (37.9) (36.9) EBIT 64.2 40.4 40.8 47.6 74.2 Interest Income (Expense) (31.7) (31.1) (32.5) (36.5) (38.9) Pretax Income 32.5 9.3 8.3 11.1 35.3 Income Tax (11.4) (3.3) (2.9) (3.9) (12.4) Net Income 21.1 6.0 5.4 7.2 22.9 Shares outstanding (millions) 55.8 55.8 55.8 55.8 55.8 Earnings per share $0.38 $0.11 $0.10 $0.13 $0.41 Balance Sheet 2014 2015 2016 2017 2018 Assets Cash 47.6 66.4 80.7 70.2 72.7 Accounts Receivable 87.2 71.2 70.9 75.6 87.2 Inventory 33.3 30.4 26.9 32.2 37.1 Total Current Assets 168.1 168.0 178.5 178.0 197.0 Net Property, Plant & Equip. 241.9 245.9 312.2 349.6 350.8 Goodwill & Intangibles 358.5 358.5 358.5 358.5 358.5 Total Assets 768.5 772.4 849.2 886.1 906.3 Liabilities & Stockholders' Equity Accounts Payable 18.7 17.8 20.1 28.8 29.9 Accrued Compensation 7.6 5.8 7.3 8.6 10.7 Total Current Liabilities 26.3 23.6 27.4 37.4 40.6 Long-term Debt 498.7 498.7 574.4 598.9 598.9 Total Liabilities 525.0 522.3 601.8 636.3 639.5 Stockholders' Equity 243.5 250.1 247.4 249.8 266.8 Total Liabilities & Stockholders' Equity 768.5 772.4 849.2 886.1 906.3 Statement of Cash Flows 2014 2015 2016 2017 2018 Net Income 21.1 6.0 5.4 7.2 22.9 Depreciation & Amortization 26.6 26.5 32.4 37.9 36.9 Chg. in Accounts Receivable 3.9 16.0 0.3 (4.7) (11.6) Chg. in Inventory (2.9) 2.9 3.5 (5.3) (4.9) Chg. in Pay. & Accrued Comp. 2.3 (2.7) 3.8 10.0 3.2 Cash from Operations 51.0 48.7 45.4 45.1 46.5 Capital Expenditures (24.8) (24.4) (101.3) (74.6) (38.3) Cash from Investing Activ. (24.8) (24.4) (101.3) (74.6) (38.3) Dividends Paid (5.5) (5.5) (5.5) (5.5) (5.7) Sale (or purchase) of stock - - - - - Debt Issuance (Pay Down) - - 75.7 24.5 - Cash from Financing Activ. (5.5) (5.5) 70.2 19.0 (5.7) Change in Cash 20.7 18.8 14.3 (10.5) 2.5 Mydeco Stock Price $7.46 $3.65 $4.92 $8.69 $11.58