See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute...

 

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See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydeco's ROE each year from 2015 to 2019. b. Compute Mydeco's ROA each year from2015 to 2019. c. Which return is more volatile? Why? a. Compute Mydeco's PE ratio each year from 2015 to 2019. Calculate the ROE for 2015-2019 below: (Round dollar amounts to one decimal place and ROE to two decimal places.) Year Net Income Stockholders' Equity ROE $ 46 2015 GLOB % (Click on the following icon in order to copy its contents into a spreadsheet.) 2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp. Mydeco Corp. 2015-2019 (All data as of fiscal year end; in $ million) Income Statement 2015 2016 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) Eamings per Share Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equip. Goodwill & Intangibles 394.5 (186.4) 208.1 (67.4) (60.0) (28.6) 52.1 (34.5) 17.6 (6.2) * 114 56.8 $0.20 2015 48.1 87.5 34.3 169.9 246.1 361.9 365.1 (173.7) 191.4 (66.6) (58.5) (26.8) 39.5 (34,8) 4.7 (1.6) 3.1 56.8 $0.05 2016 63.1 71.6 31.6 166.3 239.3 361.9 2017 429.3 (208.9) 220.4 (81.4) (60.0) (34.6) 44.4 (32.8) 11.6 (4.1) 7.5 56.8 $0.13 2017 81.5 71.5 28.4 181.4 304.3 361.9 2018 506.3 (242.1) 264.2 (104.1) (66.3) (39.5) 54.3 (38.2) 16.1 (5.6) 10.5 56.8 $0.18 2018 73.2 76.8 31.6 181.6 342.2 361.9 2019 606.1 (291.6) 314.5 (125.6) (79.3) (37.8) 71.8 (41.1) 30.7 (10.7) 20.0 56.8 $0.35 2019 73.3 86.2 36.6 196.1 343.6 361.9 Data table Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-term Debl Total Liabilities Stockholders' Equity Total Liabilities & Stockholders Equity Statement of Cash Flows Net Income Depreciation & Amortization Chg in Accounts Receivable Chg. in Inventory Chg, in Payables & Accrued Comp Cash from Operations Capital Expenditures Cash from Investing Activities Dividends Paid Sale (or purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activities Change in Cash Mydeco Stock Price 361.9 777.9 20.5 6.8 27.3 495.6 522.9 255.0 777.9 2015 11.4 28.6 3.9 (2.7) 1.5 42.7 (242) (24.2) (5.4) (5.4) 13.1 $7.12 361.9 767.5 25 2016 16.4 5.9 22.3 495.6 517.9 249.6 767.5 3.1 26.8 15.9 2.7 (5.0) 43.5 (23.1) (23.1) (5.4) (5.4) 15.0 53.05 361.9 847.6 22.1 6.9 29,0 571.7 600.7 246.9 847.6 2017 7.5 346 0.1 3.2 6.7 52.1 (1044) (104.4) (5.4) 76.1 70.7 18.4 $5.59 361.9 885.7 27.1 8.3 35.4 595.1 630.5 255.2 885.7 2018 10.5 30.5 (15.3) (32) 47.9 (74.2) (74.2) (5.4) 234 18.0 (8.3) $8.53 361.9 901.6 30.5 10.3 40.8 595.1 635.9 265.7 901.0 2019 20.0 37.8 (9.4) (5.0) 54 48.8 (41.2) (41.2) (7.5) (7.5) 0.1 $10.33 See Table 2.5 showing financial statement data and stock price data for Mydeco Corp. a. Compute Mydeco's ROE each year from 2015 to 2019. b. Compute Mydeco's ROA each year from2015 to 2019. c. Which return is more volatile? Why? a. Compute Mydeco's PE ratio each year from 2015 to 2019. Calculate the ROE for 2015-2019 below: (Round dollar amounts to one decimal place and ROE to two decimal places.) Year Net Income Stockholders' Equity ROE $ 46 2015 GLOB % (Click on the following icon in order to copy its contents into a spreadsheet.) 2015-2019 Financial Statement Data and Stock Price Data for Mydeco Corp. Mydeco Corp. 2015-2019 (All data as of fiscal year end; in $ million) Income Statement 2015 2016 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) Eamings per Share Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equip. Goodwill & Intangibles 394.5 (186.4) 208.1 (67.4) (60.0) (28.6) 52.1 (34.5) 17.6 (6.2) * 114 56.8 $0.20 2015 48.1 87.5 34.3 169.9 246.1 361.9 365.1 (173.7) 191.4 (66.6) (58.5) (26.8) 39.5 (34,8) 4.7 (1.6) 3.1 56.8 $0.05 2016 63.1 71.6 31.6 166.3 239.3 361.9 2017 429.3 (208.9) 220.4 (81.4) (60.0) (34.6) 44.4 (32.8) 11.6 (4.1) 7.5 56.8 $0.13 2017 81.5 71.5 28.4 181.4 304.3 361.9 2018 506.3 (242.1) 264.2 (104.1) (66.3) (39.5) 54.3 (38.2) 16.1 (5.6) 10.5 56.8 $0.18 2018 73.2 76.8 31.6 181.6 342.2 361.9 2019 606.1 (291.6) 314.5 (125.6) (79.3) (37.8) 71.8 (41.1) 30.7 (10.7) 20.0 56.8 $0.35 2019 73.3 86.2 36.6 196.1 343.6 361.9 Data table Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-term Debl Total Liabilities Stockholders' Equity Total Liabilities & Stockholders Equity Statement of Cash Flows Net Income Depreciation & Amortization Chg in Accounts Receivable Chg. in Inventory Chg, in Payables & Accrued Comp Cash from Operations Capital Expenditures Cash from Investing Activities Dividends Paid Sale (or purchase) of stock Debt Issuance (Pay Down) Cash from Financing Activities Change in Cash Mydeco Stock Price 361.9 777.9 20.5 6.8 27.3 495.6 522.9 255.0 777.9 2015 11.4 28.6 3.9 (2.7) 1.5 42.7 (242) (24.2) (5.4) (5.4) 13.1 $7.12 361.9 767.5 25 2016 16.4 5.9 22.3 495.6 517.9 249.6 767.5 3.1 26.8 15.9 2.7 (5.0) 43.5 (23.1) (23.1) (5.4) (5.4) 15.0 53.05 361.9 847.6 22.1 6.9 29,0 571.7 600.7 246.9 847.6 2017 7.5 346 0.1 3.2 6.7 52.1 (1044) (104.4) (5.4) 76.1 70.7 18.4 $5.59 361.9 885.7 27.1 8.3 35.4 595.1 630.5 255.2 885.7 2018 10.5 30.5 (15.3) (32) 47.9 (74.2) (74.2) (5.4) 234 18.0 (8.3) $8.53 361.9 901.6 30.5 10.3 40.8 595.1 635.9 265.7 901.0 2019 20.0 37.8 (9.4) (5.0) 54 48.8 (41.2) (41.2) (7.5) (7.5) 0.1 $10.33

Answer rating: 100% (QA)

ANSWER Okay lets calculate the ROE for Mydeco Corp from 2015 to 2019 ROE Net Income Stockholders Equity 2015 ROE Net Income 2015 114 million Stockhold... View the full answer