JNTU Summary of Apple Up to 2012 Corporate Finance Case Study
Question Description
Hi ,
Read Chapter 11, Dividend Policy (Apple, Inc.) of Lessons in Corporate Finance: A Case Studies Approach to Financial Tools, Financial Policies, and Valuation, pages 277 to 299, and review the case on Apple, Inc. Based on this situation and your own research, answer the following questions:
1.Provide a brief summary of Apple, Inc. leading up to 2012, explaining the situation faced by the company.
2.The case states that due to a high push for innovation and new product development, the original costs of all projects are not always able to be recouped. What does this mean in terms of project evaluation of NPV and IRR? Do you agree with this strategy taken by Apple, Inc?
3.Apple, Inc. operated with no debt and a large amount of cash on hand. What are the advantages and disadvantages of this financial structure? Is the capital structure optimum for the high tech industry?
4.The authors outlined several suggestions for what Apple, Inc. could do with the excess cash that the company had in 2011. Do you agree with this suggestions? Why or why not? If you disagree with any suggestions, what would you suggest instead?
5.Ultimately, Apple, Inc. decided to start paying a dividend to stockholders in 2012. Do you agree with Apples decision? Why or why not?
6.Is there anything else you would like to add about this case that has not been covered?
Case summaries should follow a 5 paragraph writing format (Introduction, body, and conclusion) as well as utilize APA formatting
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