Apple, Inc. significantly expanded its payout or cash distribution program (share repurchases and dividends) in response to

Fantastic news! We've Found the answer you've been seeking!

Question:

Apple, Inc. significantly expanded its payout or cash distribution program (share repurchases and dividends) in response to shareholders’ demands, and this was accompanied by the issuance of bonds. Apple’s decision to issue debt significantly altered its capital structure from one that was all-equity to one that comprised both equity and debt.

Why would a company with so much cash choose to issue debt?

What possible signals would the issuance of debt send to the stock market and investors?

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

See More Books

Posted Date: Jan 01, 2024 01:15 AM

See More Questions

Ann Carter, Chief Financial Officer of Consolidated Electric Company (Con El), must make a recommendation to Con Els board of directors regarding the firms dividend policy. Con El owns two...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Enron, USA The case of Enron, the Houston-based energy concern, has been widely reported and analyzed in the press given its dubious honor as one of the single largest bankruptcies in US corporate...
In Exercises sketch the graph of an arbitrary function that satisfies the given condition but does not satisfy the conditions of the Mean Value Theorem on the interval [-5, 5]. is continuous on...
How does the "invisible hand" work in a competitive market system?
The expected activity of the paper-making plant of Conroy Paper Company was 58,400 machine hours per month. Practical capacity was 73,000 machine hours per month. The standard machine hours allowed...
Do we need coding standards even if they make no difference to the functionality of software?
The balance in Mesa Companys raw materials inventory account was $45,000 at the beginning of April and $38,000 at the end of April. Raw materials purchased during the month totaled $55,000. Mesa used...
Calculate the loan risk associated with a $2 million, five-year loan to a BBB-rated corporation in the computer parts industry that has a duration of 6.4 years. The cost of funds for the bank is 8...
Lunatics, an e-commerce sports company wants to buy Rowdy Trading Cards at a cost of $504 million. Rowdy will operate for 20 years. They expect annual cash flows from operations to be $70.1 million...
On September 1, 2017 the account balances of Beck Equipment Repair, Ltd. Were as follow Credit $ 2.240 No Debit No 158 Accumulated Depreciation - Equpment 201 Account Payable 101 Cash S 8.000 112...
One of the pitfalls of these forecasting tools is it is difficult to do time-series analysis. relying on them too much, which eliminates the human element in forecasting. they take up too much human...
Explain the effects on college education of the development of a teaching machine that you plug into a students brain and that makes the student understand everything. How would your answer differ if...
Shannon Jones just received an e-mail message from an angel investor who has agreed to listen to her pitch her business idea. The investor said, Your timing is goodI just happen to be sitting on...
When you buy a cheap computer printer, you can sometimes get it for free after the rebate. Why would a firm sell you something for a zero price? (The answer isnt that it wants to be nice.)
Simulation models require a higher set-up cost to start and operate compared to decision tree. require a lower set-up cost to start and operate compared to decision tree tools. require a higher...
2. An n-well resistor has a width of 20 and a length of 400. A 20 by 20 square of n-well has a 15 fF parasitic capacitance. If the square resistance is 800 ohm, what is the time delay through this...
Selected condensed data taken from a recent statement of financial position of Morino Ltd. are as follows. MORINO LTD. Statement of Financial Position (partial) Other current assets...
Why is it appropriate to use the required rate of return on equity capital (rather than the weighted average cost of capital) as the discount rate in the residual income valuation approach?
Partial forecasts of financial statements for Watson Corporation appear in Exhibit 10.8 (income statement), Exhibit 10.9 (balance sheet), and Exhibit 10.10 (statement of cash flows). Selected amounts...
A firms income tax return shows $50,000 of income taxes owed for 2009. For financial reporting, the firm reports deferred tax assets of $42,900 at the beginning of 2009 and $38,700 at the end of...
The government regularly publishes many different economic statistics, such as the unemployment rate, the inflation rate, and the surplus or deficit in the federal budget. Study recent newspapers and...
Prove that the dual function of Eq. (16.12) is concave Data From Equation (16.12) 19S See https://www.gams.com/ 20 See http://cvxr.com/
Consider the quadratic programming problem. min x+x s.t. 1x2 = 4. x1

Apple, Inc. significantly expanded its payout or cash distribution program (share repurchases and dividends) in response to

Question:

Expert Answer:

A company with a significant amount of cash may choose to issue debt for several reasons 1 Tax Efficiency Debt interest payments are often taxdeductib... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

Students also viewed these finance questions