See Table 2.5

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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

2016-2019

as they were in

2015.

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

Question content area bottom

Part 1

Calculate the new EPS for

2016-2019

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

Year		2016
Revenue (millions)	$
Net Profit Margin			%
New Net Income (millions)	$
Shares Outstanding (millions)
New EPS	$

	2017
$
		%
$
$

	2018
$
		%
$
$

	2019
$
		%
$
$

2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp.
(All data as of fiscal year end; in $ millions)
Income Statement	2015	2016	2017	2018	2019
Revenue	408.5	364.9	426.9	509.3	607.9
Cost of Goods Sold	(187.6)	(173.6)	(207.5)	(248.9)	(294.8)
Gross Profit	220.9	191.3	219.4	260.4	313.1
Sales and Marketing	(65.8)	(66.7)	(83.7)	(99.9)	(116.7)
Administration	(59.5)	(59.8)	(60.0)	(65.6)	(76.6)
Depreciation & Amortization	(28.2)	(28.8)	(34.8)	(38.7)	(36.7)
EBIT	67.4	36.0	40.9	56.2	83.1
Interest Income (Expense)	(35.6)	(34.0)	(32.8)	(38.8)	(40.7)
Pretax Income	31.8	2.0	8.1	17.4	42.4
Income Tax	(11.1)	(0.7)	(2.8)	(6.1)	(14.8)
Net Income	20.7	1.3	5.3	11.3	27.6
Shares Outstanding (millions)	54.2	54.2	54.2	54.2	54.2
Earnings per Share	$0.38	$0.02	$0.10	$0.21	$0.51
Balance Sheet	2015	2016	2017	2018	2019
Assets
Cash	48.2	68.1	89.5	79.2	92.4
Accounts Receivable	90.1	71.1	69.1	75.2	86.6
Inventory	32.6	29.6	28.9	32.9	33.9
Total Current Assets	170.9	168.8	187.5	187.3	212.9
Net Property, Plant & Equipment	248.3	239.4	306.1	347.6	350.8
Goodwill & Intangibles	362.3	362.3	362.3	362.3	362.3
Total Assets	781.5	770.5	855.9	897.2	926.0
Liabilities & Stockholders' Equity
Accounts Payable	20.6	17.8	23.1	27.2	33.3
Accrued Compensation	6.2	6.4	7.5	8.8	8.9
Total Current Liabilities	26.8	24.2	30.6	36.0	42.2
Long-Term Debt	495.6	495.6	572.4	597.3	597.3
Total Liabilities	522.4	519.8	603.0	633.3	639.5
Stockholders' Equity	259.1	250.7	252.9	263.9	286.5
Total Liabilities & Stockholders' Equity	781.5	770.5	855.9	897.2	926.0
Statement of Cash Flows	2015	2016	2017	2018	2019
Net Income	20.7	1.3	5.3	11.3	27.6
Depreciation & Amortization	28.2	28.8	34.8	38.7	36.7
Change in Accounts Receivable	3.9	19.0	2.0	(6.1)	(11.4)
Change in Inventory	(2.9)	3.0	0.7	(4.0)	(1.0)
Change in Pay. & Accrued Comp.	2.3	(2.6)	6.4	5.4	6.2
Cash from Operations	52.2	49.5	49.2	45.3	58.1
Capital Expenditures	(26.7)	(23.5)	(98.5)	(74.4)	(38.5)
Cash from Investing Activ.	(26.7)	(23.5)	(98.5)	(74.4)	(38.5)
Dividends Paid	(6.1)	(6.1)	(6.1)	(6.1)	(6.4)
Sale (or Purchase) of Stock	-	-	-	-	-
Debt Issuance (Pay Down)	-	-	76.8	24.9	-
Cash from Financing Activ.	(6.1)	(6.1)	70.7	18.8	(6.4)
Change in Cash	19.4	19.9	21.4	(10.3)	13.2
Mydeco Stock Price	$7.41	$2.64	$6.25	$8.63	$9.91