apple raises $17 billion in record debt sale kun-mao chao kun-mao chao ( 趙坤茂 ) department of...
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Apple Raises $17 Billion in Record Debt Sale
Kun-Mao Chao (趙坤茂 )Department of Computer Science and
Information EngineeringNational Taiwan University, Taiwan
A note given in BCC class on May 1, 2013
Steve Jobs
2Source: Wikepedia
Timothy Cook
3Source: The New York Times 4/30/2013
Why?
• With a $145 billion cash hoard, Apple could acquire Facebook, Hewlett-Packard and Yahoo — and still have more than $10 billion left over.
• In a record bond deal, the company raised $17 billion on Tuesday.
• Why would a company with so much cash even bother to issue debt?
4Source: The New York Times 4/30/2013
Some of the reasons
• to exploit historically low interest rates and strong investor demand for bonds
• to help finance a $100 billion payout to its shareholders
• to avoid a potentially big tax hit
5Source: The New York Times 4/30/2013
The Dow Jones Industrial Average
6
The Dow Jones Industrial Average
7
The Dow Jones Industrial Average
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