Quantitatively compare the results of a share repurchase, dividend, and iPrefissuance. Assume that Apple will use...
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Quantitatively compare the results of a share repurchase, dividend, and iPrefissuance. Assume that Apple will use all excess cash for share repur- chases, 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? Quantitatively compare the results of a share repurchase, dividend, and iPrefissuance. Assume that Apple will use all excess cash for share repur- chases, 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?
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Share Repurchase Dividend and iPrefissuance are three common ways for companies to return excess cash to shareholders Each method has its own advantag... View the full answer
Related Book For
Essentials Of Statistics For Business And Economics
ISBN: 9781305081598
7th Edition
Authors: David Anderson, Thomas Williams, Dennis Sweeney, Jeffrey Cam
Posted Date:
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