Question: after reading the case study quotfinancial policy at applequot answer...

After reading the case study, "Financial Policy at Apple" answer all of these four questions and their sub-questions as a group (regardless of how many students are in the group):

1. What is the main, “high class” problem which Apple management must address?
   1. Generating excessive cash is a sign of business success, so why is having it a problem?
2. Should Apple give Einhorn and their largest shareholders what they want and return most of the $137-billion in cash to shareholders rather than let it sit unusued?
   1. If no, why? If your answer is yes, how much and through what method?
3. Or, should Apple keep most of its unused cash to invest in new technologies and to deal with uncertainties in their markets?
   1. If no, why? If your answer is yes, how should they treat the 35% of their cash held overseas and subject to repatriation tax?
4. What is the best course of action that will please shareholders, but also leave the company with sufficient investment capital to innovate?
   1. What role does financial forecasting play in this decision?