In your opinion, why does Apple hold so much cash? How much ‘excess’ cash do they
have? How much cash would they have if they distributed all of their excess cash to
shareholders in 2012? (Note: Use Exhibit 10 to forecast Apple’s financial status over the
next 5 years)
2. If Apple chose to commit to an annual dividend from 2012-17, how much do you think
they could afford to distribute each year?
3. Provide a quantitative and qualitative analysis and comparison of a share repurchase, a
dividend, and iPref issuance. Assume that Apple will use all excess cash for share
repurchases, dividends, and in the case of iPref, each shareholder will issue five per
share. (Note: For the iPref analysis, assume a constant P/E ratio of 10.0x as Einhorn did)
4. What do you recommend that Cook and Oppenheimer should do?
Please provide me solutions for it