See Table 2.5 E showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco repurchases 2.5 million shares each year from 2016 to 2019. What would be its earnings per share in 2019? (Assume Mydeco pays for the shares using its available cash and that Mydeco earns no interest on its cash balances.) (Select the best choice below.) O A. A repurchase does not impact earnings directly, so any change to EPS will come from a reduction in shares outstanding. 2019 shares outstanding = 54.9 million - 4 x 2.5 million = 44.9 million, EPS = $20.3 million/44.9 million = $0.45. B. A repurchase does not impact earnings directly, so any change to EPS will come from a reduction i shares outstanding. 2019 shares outstanding = 54.9 million - 4 x 2.5 million = 44.9 million, EPS = $12.9 million/44.9 million = $0.29. OC. A repurchase does not impact earnings directly, so any change to EPS will come from an increase in shares outstanding. 2019 shares outstanding = 54.9 million +4 x 2.5 million = 52.4 million, EPS = $20.3 million / 52.4 million = $0.39. OD. A repurchase does not impact earnings directly, so any change to EPS will come from an increase in shares outstanding. 2019 shares outstanding = 54.9 million + 4 x 2.5 million = 52.4 million, EPS = $12.9 million / 52.4 million = $0.25. 424.8 Income Statement Revenue Cost of Goods Sold Gross Profit Sales and Marketing Administration Depreciation & Amortization EBIT Interest Income (Expense) Pretax Income Income Tax Net Income Shares Outstanding (millions) Earnings per Share Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equipment Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities (All data as of fiscal year end; in $ millions) 2015 2016 2017 406.2 358.8 (193.0) (173.9) (205.0) 213.2 184.9 219.8 (65.7) (64.8) (81.5) (59.6) (58.3) (58.4) (27.1) (27.0) (33.9) 60.8 34.8 46.0 (34.8) (30.9) (30.3) 26.0 3.9 15.7 (9.1) (1.4) (5.5) 16.9 2.5 10.2 54.9 54.9 54.9 $0.31 $0.05 $0.19 2015 2016 2017 2018 513.5 (245.2) 268.3 (105.0) (66.6) (38.3) 58.4 (38.6) 19.8 (6.9) 12.9 54.9 $0.23 2018 2019 603.4 (297.0) 306.4 (118.8) (79.1) (36.6) 71.9 (40.6) 31.3 (11.0) 20.3 54.9 $0.37 2019 49.4 88.1 35.2 172.7 247.6 366.4 786.7 68.4 71.5 31.2 171.1 240.6 366.4 778.1 85.9 68.7 28.7 183.3 313.1 366.4 862.8 79.7 76.4 31.2 187.3 350.6 366.4 904.3 82.6 84.2 35.6 202.4 342.1 366.4 910.9 17.3 7.1 24.4 19.8 6.4 26.2 21.5 7.7 29.2 28.5 8.4 36.9 31.2 9.5 40.7 35.2 172.7 247.6 366.4 786.7 31.2 171.1 240.6 366.4 778.1 28.7 183.3 313.1 366.4 862.8 31.2 187.3 350.6 366.4 904.3 35.6 202.4 342.1 366.4 910.9 Inventory Total Current Assets Net Property, Plant & Equipment Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Change in Accounts Receivable Change in Inventory Change in Pay. & Accrued Comp. Cash from Operations Capital Expenditures Cash from Investing Activ. Dividends Paid Sale (or Purchase) of Stock Debt Issuance (Pay Down) Cash from Financing Activ. Change in Cash Mydeco Stock Price 17.3 7.1 24.4 501.6 526.0 260.7 786.7 2015 16.9 27.1 3.9 (2.9) 1.7 46.7 (24.3) 19.8 6.4 26.2 501.6 527.8 250.3 778.1 2016 2.5 27.0 16.6 4.0 1.8 51.9 (27.0) (27.0) (5.9) 21.5 7.7 29.2 576.1 605.3 257.5 862.8 2017 10.2 33.9 2.8 2.5 3.0 52.4 (103.5) (103.5) (5.9) 28.5 8.4 36.9 601.0 637.9 266.4 904.3 2018 12.9 38.3 (7.7) (2.5) 7.7 48.7 (73.9) (73.9) (5.9) 31.2 9.5 40.7 601.0 641.7 269.2 910.9 2019 20.3 36.6 (7.8) (4.4) 3.8 48.5 (38.7) (38.7) (6.9) (24.3) (5.9) 74.5 68.6 (5.9) 24.9 19.0 (6.2) $8.57 (5.9) 19.0 $3.37 16.5 17.5 (6.9) 2.9 $11.56 $7.45 $5.32