SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rnsmth who wrote (102962)9/14/2010 10:58:51 AM
From: Paul Kern  Read Replies (1) | Respond to of 213173
 
I do not understand how going into debt to pay shareholders is a good move.


It's an accounting trick. This way they don't need to repatriate cash they hold in overseas accounts and pay the tax.



To: rnsmth who wrote (102962)9/14/2010 11:01:37 AM
From: Keith Feral  Read Replies (1) | Respond to of 213173
 
Leveraging your balance sheet is always a good move if you can borrow money at the right price. With Dell and IBM walking off with billions in new loans at 1.5%, they are doing a great job raising capital at very cheap costs.

Seems kind of unnecessary when a company like MSFT already has $35 billion in cash, but $40 billion would be better as long as they can pay it back and the finance costs are extremely low.


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News