Quantitatively compare the results of a share repurchase, dividend, and iPref issuance. Assume that Apple will use all excess cash for share repurchases, dividends and, in the case of iPref, will issue five per share. For the iPref analysis, assume a constant P/E ratio of 10.0x as Einhorn did. How does this assumption impact the analysis?
Case: Financial Policy at Apple, 2013 (A) by Mihir A. Desai and Elizabeth A. Meyer, June 19, 2014