. Consider the industry in which Apple operates. What is critical for success in this industry and what should Tim Cook be most concerned about going forward? How might these factors affect his decision to return cash to shareholders

might these factors affect his decision to return cash to shareholders? 2. Using data from Exhibit 5 "Annual Summary of Financials from 2000-2012," please calculate the following ratios: the year-over-year growth rate in sales, the annual net profit margin (i.e., net income/sales), the annual cash flow margin (i.e., cash flow/sales), the annual asset turnover (i.e., sales/assets), the annual leverage, and the annual equity multiplier (i.e., assets/equity). Apply these ratios in a Dupont analysis of return on equity (ROE) over time. How is Apple's large cash reserves affecting ROE? 3. Estimate how much "excess cash" Apple has and justify your assumption. Start with cash and marketable securities for FY2012, then consider how much Apple must pay toward repatriation as well as its required cash when determining excess cash. Use your estimate of excess cash along with the given growth rates in Exhibit 10, "Financial Forecast Spreadsheet," to forecast Apple's future cash over the next five fiscal years. How much cash would Apple have after five years if they distributed all of their excess cash to shareholders in 2012? [Hint: the other rows may be forecasted assuming that they will remain the same ratio of sales (for the income statement) or cost of goods sold (for the balance sheet) as they are in 2012.] 4. Based on FY2012 excess cash estimates, what is the maximum dividend per share Apple could afford to pay? What would you expect the stock price to be after the dividend is paid? 5. Based on FY2012 excess cash estimates, what is the maximum number of shares that Apple could repurchase? What would you expect the stock price to be after the repurchases are made? 6. What should Cook and Oppenheimer do with regards to returning cash to shareholders and why? Is one approach superior or could a mixed approach be beneficial? 7. Briefly describe how, if at all, your decision process changes under Trump's tax law (TCJA), which at the time, imposed a one-time tax on earnings overseas whether or not the money is repatriated