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):
- What is the main, “high class” problem which Apple management
- Generating excessive cash is a sign of business success, so why is having it a problem?
- 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?
- If no, why? If your answer is yes, how much and through what method?
- Or, should Apple keep most of its unused cash to invest in new
technologies and to deal with uncertainties in their markets?
- If no, why? If your answer is yes, how should they treat the 35% of their cash held overseas and subject to repatriation tax?
- What is the best course of action that will please
shareholders, but also leave the company with sufficient investment
capital to innovate?
- What role does financial forecasting play in this decision?