1) Apple began buying back shares in March 2012, what is the total number of shares the company has...

Question

1) Apple began buying back shares in March 2012, what is the total number of shares the company has bought back since then by year? Show the annual EPS growth reported vs EPS growth if no buybacks had happened (hint: Make sure to include share grants to employees though) since the start of 2012

2) Make a cash flow model like what I provided in class for the below project.

A gold company is considering investing in the below project:

Initial Outflow: $10,000,000

Production Estimate:

XXXXXXXXXXYear 1: 2,000

XXXXXXXXXXYear 2: 3,000

XXXXXXXXXXYear 3: 5,000

XXXXXXXXXXYear 4: 5,000

XXXXXXXXXXYear 5: 5,000

XXXXXXXXXXYear 6: 5,000

XXXXXXXXXXYear 7: 5,000

XXXXXXXXXXYear 8: 5,000

Gold Prices: $1,500/oz

Fixed Costs: $600/oz

Variable costs: ~25% (of total revenues)

Taxes: 30%

Depreciation: $7 million can be depreciated over the 8yr life of the project while the remaining $3 million is working capital that will be returned in year 8.

Discount Rate: 14%

In addition to the model, use the above variables but build the sheet with excel formulas where I can input my own numbers to see how it changes the value of the project. Using The values provided and look at the IRR and NPV of the project, Change some of the values to show what realistic assumptions would make it profitable and not profitable and describe if you believe realistic or not.

Khushboo · Accepted Answer

Apple Inc analysis
		Particulars	2013	2014	2015	2016	2017	2018	2019	2020	Total
		Net income	37,037.00	39,510.00	53,394.00	45,687.00	48,351.00	59,531.00	55,256.00	57,411.00
		Weighted avg shares	6,521.34	6,122.63	5,793.07	5,500.28	5,251.69	19,821.51	18,471.34	17,352.12
		EPS	5.68	6.45	9.22	8.31	9.21	3.00	2.99	3.31
		Shares bought back	19.40	67.95	255.14	167.76	134.83	1,622.20	1,380.82	917.27	4,565.36
		Weighted avh shares without buyback	6,540.74	6,190.58	6,048.21	5,668.04	5,386.52	21,443.71	19,852.16	18,269.39
		EPS without repurchase	5.66	6.38	8.83	8.06	8.98	2.78	2.78	3.14
	1	Total no of shares bought back (million)	4,565.36
	2	Year	2013	2014	2015	2016	2017	2018	2019	2020
		EPS without buyback	5.66	6.38	8.83	8.06	8.98	2.78	2.78	3.14
		Annual growth %		12.71%	38.32%	-8.70%	11.36%	-69.07%	0.26%	12.90%
		EPS with buyback	5.68	6.45	9.22	8.31	9.21	3.00	2.99	3.31
		Annual growth %		13.62%	42.83%	-9.88%	10.84%	-67.38%	-0.40%	10.

1) Apple began buying back shares in March 2012, what is the total number of shares the company has bought back since then by year? Show the annual EPS growth reported vs EPS growth if no buybacks had...

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