Data Table 2012-2016 Financial Statement Data and Stock Price Data for Mydeco Co
ID: 2821870 • Letter: D
Question
Data Table 2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) Statement 2012 2013 2014 2015 2016 407.1368.1 422.4 (206.4) 216.0 (84.0) (59.5) (35.8) 36.7 608.7 Goods Sold Profit and Marketing (187.7) (1758 192.3 507.6 (243.8) 263.8 (296.2) 219.4 312.5 (100.7)(121.1) (76.7) (40.2) 74.5 (40.0) 34.5 (66.8) (59.5) (25.6) 66.2 (34.9) 31.3 11.0) (28.7) 37.7 (31.3) 6.4 (2.2) 4.2 54 S0.08 (67.4) (38.6) 57.1 (38.8) 18.3 (6.4) 11.9 54 $0.22 t Income (Expense) tax Income 4.8 Outstanding (millions) s per Share e Sheet 22.4 54 $0.41 54 S0.38 54 $0.06 2012 2013 2014 2015 2016 48.8 87.3 32.4 168.5 65.5 68.5 29.6 163.6 83.4 68.6 26.5 178.5 74.5 75.4 31.2 181.1 78.5 86.1 34.6 199.2 al Current Assets Print Done MacBExplanation / Answer
Answer is C
A repurchase will indirectly effect the EPS because as company will repurchase the shares, number of outstanding shares will decrease which will increase the EPS
So in this example;
Current shares outstanding : 54 million
Repurchased shares in 4 years : 4*2.5 million = 10 million
Net shares outstading = 54 - 10 = 44 million
Earnings in 2016 =$22,4 million
So, EPS = 22.4 / 44 = $0.51 per share
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