These questions are based on Apple. Please help me with these questions.
1. Choose a company from the below list of sector/industry in the stock market. Make sure the company is listed under Large-cap (a stock with a market cap between $10 billion and $200 billion). Make sure to pick a Publicly Listed Company only as they need to declare their financial statements (2 Marks) a. Financials b. Utilities c. Consumer Discretionary d. Consumer Staples e. Energy f. Healthcare g. Industrials h. Technology i. Telecom j. Materials k. Real Estate I have decided to go with Apple. 2. Lets assume this company is expecting to earn a profit of $30 million and you are required to make decisions. Download the Annual Financial Statement of 2022 and research the Dividend Policy(If the company pays regular dividends historically) before answering.. Comment on the existing dividend policy. (3 Marks) For the past 12 years, Apple has increased its dividend. Apple pays quarterly dividends to its shareholders. The most recent change in the company's dividend was an increase of $0.01 on Thursday, May 4, 2023. The current dividend yield for Apple is 0.52%. Apple's most recent quarterly dividend payment of $0.24 per share was made to shareholders on Thursday, May 18,2023. a. The company uses the money to pay off a one-time special dividend. Keeping in mind the Modigliani and Miller approach how will this decision affect the stock price and the shareholder value. (Use calculations of Market Value and Balance Sheet of 2022 to justify the rationale) 5 Marks b. The company uses the money to pay off the debt. How would that affect the value of company? (Use calculations of Market Value and Balance Sheet of 2022 to justify the rationale) 5 marks c. If the company uses this money to repurchase shares how would that affect the P/E, ROA and ROE? How will the value of company value be affected by share-repurchase? (Use calculations of Market Value and Balance Sheet of 2022 to justify the rationale) 10 Marks d. If the company decides to make a permanent change in dividend policy based on the profits would that be a good idea? 5 Marks e. Based on the above analysis what are your final comments about the existing dividend policy of the Company. 5 Marks 1. Choose a company from the below list of sector/industry in the stock market. Make sure the company is listed under Large-cap (a stock with a market cap between $10 billion and $200 billion). Make sure to pick a Publicly Listed Company only as they need to declare their financial statements (2 Marks) a. Financials b. Utilities c. Consumer Discretionary d. Consumer Staples e. Energy f. Healthcare g. Industrials h. Technology i. Telecom j. Materials k. Real Estate I have decided to go with Apple. 2. Lets assume this company is expecting to earn a profit of $30 million and you are required to make decisions. Download the Annual Financial Statement of 2022 and research the Dividend Policy(If the company pays regular dividends historically) before answering.. Comment on the existing dividend policy. (3 Marks) For the past 12 years, Apple has increased its dividend. Apple pays quarterly dividends to its shareholders. The most recent change in the company's dividend was an increase of $0.01 on Thursday, May 4, 2023. The current dividend yield for Apple is 0.52%. Apple's most recent quarterly dividend payment of $0.24 per share was made to shareholders on Thursday, May 18,2023. a. The company uses the money to pay off a one-time special dividend. Keeping in mind the Modigliani and Miller approach how will this decision affect the stock price and the shareholder value. (Use calculations of Market Value and Balance Sheet of 2022 to justify the rationale) 5 Marks b. The company uses the money to pay off the debt. How would that affect the value of company? (Use calculations of Market Value and Balance Sheet of 2022 to justify the rationale) 5 marks c. If the company uses this money to repurchase shares how would that affect the P/E, ROA and ROE? How will the value of company value be affected by share-repurchase? (Use calculations of Market Value and Balance Sheet of 2022 to justify the rationale) 10 Marks d. If the company decides to make a permanent change in dividend policy based on the profits would that be a good idea? 5 Marks e. Based on the above analysis what are your final comments about the existing dividend policy of the Company. 5 Marks
