If you are one of Apple's shareholder, will you vote for or against stock buyback of...

If you are one of Apple's shareholder, will you vote for or against stock buyback of ICAHN proposal? please explain.

Expert Solution

As an Apple's shareholder, these are the below reasons why one can vote against Stock Buyback of ICAHN Proposal with the reason such as Cash is already carried more in the year of 2013 when observed from the 2013 Balance sheet. Apple is not necessarily an undervalued stock but was progressing in 2013 with it's cutting edge technology and product innovation. Apple has better market growth prospects in the terms of other companies relatively. And meanwhile, Apple had been through a major share buyback just before Icahn proposal itself in effect. And also Board of the Management of Apple have put forth it's views over Share Repurchase in an unfavorable position stating Apple's Capital Allocation is significant and this share repurchase/buyback is not advisable , requested the same with the Shareholders as vote against Icahn proposal. So it's better to agree with the Management which is over the financial decision as maintaining the cash balance to maintain the company's liquidity and prudence.

jeff jeffy answered 1 day ago

Who would benefit from a stock buyback?

1. Who would benefit from a stock buyback?2. What drives companies to repurchase their stock?3. Does share repurchase seem like an artificial way to raise EPS? If the company has the money to repurchase shares, why can't it find investment opportunities that will increase stock price?4. In general, what are advantages and disadvantages of share repurchase?

Is stock buyback a good or bad finance practice?

MGM recently announced a share buyback program. In the release, CEO Jim Murren states that shareholder...

MGM recently announced a share buyback program. In the release, CEO Jim Murren states that shareholder value is driven by, in part, by its share repurchase program. "We are pleased with the Company's strong balance sheet, which has allowed us to take a balanced approach to driving shareholder value through our quarterly dividend and share repurchase program, as well as continuing to invest in our properties and explore prudent growth opportunities." (https://www.prnewswire.com/news-releases/mgm-resorts-international-announces-new-2-0-billion-share-repurchase-program-300646214.html) Do share buybacks create shareholder value? Explain your...

What are the advantages and disadvantages of stock buyback? Give 1 reason for each.

Assume you are a corporate shareholder. Would you prefer to receive a stock dividend or a...

Assume you are a corporate shareholder. Would you prefer to receive a stock dividend or a cash dividend? Why? Now assume you are a corporation. Would you prefer to issue a stock dividend or a cash dividend? Why? Why do you think a company would want to retain earnings as opposed to distributing it to its shareholders? In your opinion, why would a company decide to perform a stock split?

Explain what is meant by stock buyback. Your answers need to include: (a) The motivation of...

Explain what is meant by stock buyback. Your answers need to include: (a) The motivation of the company to conduct a stock buyback? (b) When (in what situations) does the company possibly buy back their stock? (c) The expected impact of a stock buyback on the company's stock performance?

There are importance and effects of dividend buyback decisions. Does the stock market appear to reward...

There are importance and effects of dividend buyback decisions. Does the stock market appear to reward high-dividend payout? What about low-dividend payout? Does it matter what type of investor owns the shares? What is the impact on the share price of dividend policy?

Suppose you are a shareholder in a company. The current stock price is $25.00. Another company...

Suppose you are a shareholder in a company. The current stock price is $25.00. Another company is willing to purchase your firm and is offering $35.00 per share to do so. However, the management of your firm immediately begins to contest this hostile takeover bid asking shareholders to reject the offer. Provide one explanation for why management may be working against shareholders' interests and one explanation for how they may be working for shareholders' interest.

Discuss Apple's (AAPL) and Microsoft (MSFT) beta and relate to the volatility of the stock and...

Discuss Apple's (AAPL) and Microsoft (MSFT) beta and relate to the volatility of the stock and its returns over a six month period.

First, if you voted, what motivated you to vote? If you didn’t vote, what would motivate...

First, if you voted, what motivated you to vote? If you didn’t vote, what would motivate you to vote in upcoming elections (e.g. issues, candidates, political causes, celebrities)? Discuss how you participate in politics and how are you involved in your community? Second, related to the socialization process and agents, how has your family shaped your political views? What about your education? Your religion? Other factors? Third, discuss how public opinion influences the political process. How important should public opinion...

Question