Question: 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
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 2016-2019 as they were in 2015. What would Mydeco's EPS have been each year in this case?
Income Statement 2015 2016 2017 2018 2019 Revenue 399.4 362.9 426.4 508.6 605.1 Cost of Goods Sold (184.2) (174.1) (202.5) (245.1) (294.4) Gross Profit 215.2 188.8 223.9 263.5 310.7 Sales and Marketing (68.0) (65.0) (84.1) (97.7) (115.9) Administration (62.1) (57.5) (59.7) (66.6) (76.6) Depreciation & Amortization (26.6) (25.7) (36.2) (37.5) (37.2) EBIT 58.5 40.6 43.9 61.7 81 Interest Income (Expense) (34.2) (34.3) (34.2) (37.9) (40.9) Pretax Income 24.3 6.3 9.7 23.8 40.1 Income Tax (8.5) (2.2) (3.4) (8.3) (14.0) Net Income 15.8 4.1 6.3 15.5 26.1 Shares outstanding (millions) 54.1 54.1 54.1 54.1 54.1 Earnings per share $0.29 $0.08 $0.12 $0.29 $0.48 Balance Sheet 2015 2016 2017 2018 2019 Assets Cash 49.7 71.9 89.1 83.6 91.4 Accounts Receivable 87.6 69.2 68.9 75.6 85.7 Inventory 31.9 29.4 26.8 30.1 35.7 Total Current Assets 169.2 170.5 184.8 189.3 212.8 Net Property, Plant & Equip. 246.5 242.8 311.8 346.5 342.5 Goodwill & Intangibles 362.5 362.5 362.5 362.5 362.5 Total Assets 778.2 775.8 859.1 898.3 917.8 Liabilities & Stockholders' Equity Accounts Payable 19.4 19.9 23.9 25.7 30.2 Accrued Compensation 6.7 5.8 6.3 8.5 10.3 Total Current Liabilities 26.1 25.7 30.2 34.2 40.5 Long-term Debt 497.7 497.7 572.4 597.9 597.9 Total Liabilities 523.8 523.4 602.6 632.1 638.4 Stockholders' Equity 254.4 252.4 256.5 266.2 279.4 Total Liabilities & Stockholders' Equity 778.2 775.8 859.1 898.3 917.8 Statement of Cash Flows 2015 2016 2017 2018 2013 Net Income 15.8 4.1 6.3 15.5 2019 Depreciation & Amortization 26.6 25.7 36.2 37.5 37.2 Chg. in Accounts Receivable 3.9 18.4 0.3 (6.7) (10.1) Chg. in Inventory (2.9) 2.5 2.6 (3.3) (5.6) Chg. in Pay. & Accrued Comp. 1.4 (0.4) 4.5 4 6.3 Cash from Operations 44.8 50.3 49.9 47 53.9 Capital Expenditures (25.0) (23.5) (102.8) (73.4) (39.5) Cash from Investing Activ. (25.0) (23.5) (102.8) (73.4) (39.5) Dividends Paid (4.6) (4.6) (4.6) (4.6) (6.6) Sale (or purchase) of stock - - - - - Debt Issuance (Pay Down) - - 74.7 25.5 - Cash from Financing Activ. (4.6) (4.6) 70.1 20.9 (6.6) Change in Cash 15.2 22.2 17.2 (5.5) 7.8 Mydeco Stock Price $6.93 $3.63 $5.99 $8.61 $9.54
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