For 2020. Enter all dollar amounts in millions. You may create a spreadsheet if you prefer.

1. How much did Apple spend on share repurchases? (you can find this information in the statement of cash flows)

2. Suppose Apple wanted its owners equity to be the same as for 2019. How much would it have spent on share repurchases under that scenario? In other words, Apple would have bought back less stock to retain more of its earnings. Calculate how much less and what the total repurchases would have been.

3. What was Apples Debt/Equity ratio (you calculated this in a previous assignment)

4. Under the scenario in 2, what would Apples Debt/Equity ratio be? Assume no changes in liabilities.

5. What was the ROE that you calculated from the part 1, question 3? Show work again please.

6. Under Scenario of question 2 above (i.e. reduced repurchases), what would Apples ROE have been?

7. What insights did you gain?

8. Extra credit: Draw a connection between what you learned here and the Dropbox borrowing example from last time.