Question: Please help me answer the following question with clear answers. Thank you Question 20 Data Table Consider the financial statement data and stock price data
Please help me answer the following question with clear answers. Thank you
Question 20

Data Table

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 2015-2018 as they were in 2014. What would Mydeco's EPS have been each year in this case? Click the icon to view the financial statement and stock price data. Calculate the new EPS for 2015-2018 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 $ 2018 601.4 (288.6) 312.8 (118.0) (77.9) (39.0) 77.9 (40.8) 37.1 (13.0) 24.1 55.4 $0.44 2018 2014-2018 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) Income Statement 2014 2015 2016 2017 Revenue 404.2 363.6 425.5 512.8 Cost of Goods Sold (185.3) (172.7) (206.9) (248.0) Gross Profit 218.9 190.9 218.6 284.8 Sales and Marketing (65.5) (67.7) (80.9) (103.8) Administration (60.1) (59.6) (58.1) (67.0) Depreciation & Amortization (26.5) (27.5) (34.8) (38.8) EBIT 66.8 36.1 44.8 55.2 Interest Income (Expense) (32.9) (34.2) (34.0) (37.8) Pretax Income 33.9 1.9 10.8 17.4 Income Tax (11.9) (0.7) (3.8) (6.1) Net Income 22.0 1.2 7.0 11.3 Shares Outstanding (millions) 55.4 55.4 55.4 55.4 Earnings per Share $0.40 $0.02 $0.13 $0.20 Balance Sheet 2014 2015 2016 2017 Assets Cash 48.3 67.7 88.2 76.4 Accounts Receivable 89.8 69.6 69.1 77.6 Inventory 35.3 31.2 27.6 31.8 Total Current Assets 173.4 168.5 184.9 185.8 Net Property, Plant & Equipment 243.1 243.9 309.6 348.2 Goodwill & Intangibles 363.5 363.5 363.5 363.5 Total Assets 780.0 775.9 858.0 897.5 Liabilities & Stockholders' Equity Accounts Payable 19.7 17.4 23.9 28.1 Accrued Compensation 7.2 6.1 7.1 Total Current Liabilities 26.9 23.5 31.0 35.9 Long-Term Debt 503.1 503.1 579.9 604.0 Total Liabilities 530.0 526.6 610.9 639.9 Stockholders' Equity 250.0 249.3 247.1 257.6 Total Liabilities & Stockholders' 780.0 775.9 858.0 897.5 Equity Statement of Cash Flows 2014 2015 2016 2017 Net Income 22.0 1.2 11.3 Depreciation & Amortization 26.5 27.5 34.8 38.8 Change in Accounts Receivable 3.9 20.2 (8.5) Change in Inventory (2.9) 4.1 3.6 (4.2) Change in Pay. & Accrued Comp. 1.4 (3.4) 7.5 4.9 Cash from Operations 50.9 49.6 53.4 42.3 Capital Expenditures (24.4) (25.4) (104.9) (73.4) Cash from Investing Activ (24.4) (25.4) (104.9) (73.4) Dividends Paid (4.8) (4.8) (4.8) (4.8) Sale (or Purchase) of Stock Debt Issuance (Pay Down) 76.8 24.1 Cash from Financing Activ. (4.8) (4.8) 72.0 19.3 Change in Cash 21.7 19.4 20.5 (11.8) Mydeco Stock Price $8.03 $2.71 $5.56 $8.97 86.1 86.3 34.7 207.1 348.4 363.5 919.0 7.8 30.8 9.1 39.9 604.0 643.9 275.1 919.0 7.0 0.5 2018 24.1 39.0 (8.7) (2.9) 4.0 55.5 (39.4) (39.4) (6.4) (6.4) 9.7 $11.96
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