Each year since 2014, Home Depot has purchased at least $7 billion of its own outstanding common stock , averaging over $8 billion per year, recording it all as treasury stock. The accumulated total of its treasury share holdings has grown to over $65 billion, and the company now reports a deficit shareholders' equity of $3.1 billion on its 2020 balance sheet. The treasury stock balance exceeds the company's contributed capital plus its retained earnings balance. The retained earnings balance on its 2020 balance sheet is $51. 7 billion.

INSTRUCTIONS:
a. Explain what a deficit shareholders' equity means in the case of Home Depot.
b. Estimate the dollar amount of contributed capital for Home Depot on its 2020 balance sheet.
c. What general effect have Home Depot's aggressive buybacks had on its leverage ratios, as well as its return on asset and return on equity ratios?
d. Should investors be concerned that Home Depot reports a deficit shareholders' equity? Would your answer be the same if the shareholders' equity deficit resulted from large negative retained earnings instead of treasury shares?