$1.$ Compute Oracle$$s long$-$term debt to shareholders$$ equity ratio for May $31,$ Year $8$ and Year $7.$ Identify the increases in shareholders$$ equity in Year $8$ from share$-$based compensation plans. Calculate the long$-$term debt to shareholders$$ equity ratio that would have occurred had Oracle not implemented the stock repurchase plan. Comment on the potential effect on future ROE of Oracle$$s financing strategy.

$2.$ Retained earnings increase because of net income and decrease because of dividends declared. Why, then, did Oracle decrease retained earnings when it repurchased common stock?

$3.$ Of the first five changes listed in the shareholders$$ equity section, one of them, the common stock repurchase, clearly represents a cash outflow. Identify the cash flow effects of the other four items. Where will each cash flow effect be reported in the statement of cash flows?.