Consider the questions around the life cycle of a company and its dividend policy.

Incorporate these questions into required answers:

• Is the company generating positive free cash flow after making all investments with positive NPV and is the positive free cash flow likely to continue?
• Is the firms debt ratio prudent?
• Are the companys holdings of cash a sufficient cushion for unexpected setbacks and a sufficient war chest for unexpected opportunities?

Using these questions, examine the dividend policy of Apple. Discuss (1) what the dividend policy was in the immediate years before 2012, (2) what changed in 2012, and (3) what the dividend policy is today. Explicitly include both the (4) payout ratio (the answer plus the numerator, denominator, and (5) the dividend yield (as of right now) (the answer plus the numerator, denominator, and (6) whether the cash dividend is sustainable or not. (7) Be sure to incorporate ideas from the posted readings on Canvas and attribute ideas to appropriate sources. (7 points)

Again, referring to the posted readings, (8) what actions did Citigroup take to change the price of their stock and what were the motivations for Citibank to do this? (9) What was the exact impact on investor wealth? (10) Was Citigroups action controversial in the eyes of some (and if so why, and were the criticisms correct)? (3 Points)