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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Doren who wrote (212583)	8/26/2023 4:46:01 AM
From: JP Sullivan	3 Recommendations Recommended By Doren NAG1 Stock Puppy Respond to of 213177

Why would Apple sell bonds if it has excess cash and is buying back shares? It was cheap money at 1%-2.5% interest at the time and over a long repayment period, 5 or 10 years, maybe even longer. In other words, low cost and predictability with regards to cash outlays--which frees up cash for other uses, one of which is paying dividends. What a deal for Apple and shareholders! Not possible today when banks are paying 5% p.a. or more. So Apple cashed in on the opportunity. Meanwhile the bondholders end up getting 1%-2% simple interest for X years. Would you buy the bonds today? I think not! Hence, the drop in price. And of course, a dollar today is worth more than a dollar tomorrow, hello inflation!