Apple Computers Decided to Raise a Large Amount of Money

question 51

Multiple Choice

Apple Computers decided to raise a large amount of money by selling bonds (previously the company had little or no debt) and use the proceeds to buy back billions of dollars worth of the company's shares.The decision was made after Apple stock lost more than 40% of its value in a six month period when most share prices were rising.Why did Apple decide to buy back some of its shares?

• A)Apple wanted to lower its cost of capital by substituting debt for equity.
• B)Apple wanted to appease disappointed investors by offering them cash for their shares.
• C)Apple wanted to increase earning per share by reducing the number of shares outstanding.
• D)All of the above are reasonable explanations for Apple's decision.

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Definitions:

High Collectivism

A cultural or societal orientation that prioritizes the needs and goals of the group over individual desires.

Harmonious Relationships

Relationships characterized by minimal conflict and a high degree of understanding, cooperation, and agreement among individuals or groups.

Low Individualism

A cultural value orientation that emphasizes collective over individual action and decisions, prioritizing group goals over personal ones.

Individual Rights

The fundamental freedoms and protections that belong to each person, often highlighting issues of fairness and respect in social and organizational contexts.