note-5 - why Apple didn’t raise more debt to reduce tax o...

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Norway, UDIA most with invest money ROE = leftover is belong to investor ROIC = return on invest regardless of equity or debt o Any liability: long/short term, note payable o All financing instrument = that you borrow, even the zero-interest  baring debt o [EBIT(1-tax)] / Debt +Eq    (int / Debt) +[ (NI / Eq) + (Pr. Div/ Pr.  Eq)] o prefer stock issue to keep vote right as family business; preffer stock  don’t have  ROE = ROIC; when there is no debt Shareholder need to look at ROIC first (best car) and ROE is (driver)
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Unformatted text preview: why Apple didn’t raise more debt to reduce tax o because there are everywhere dif’ of regulation o political issue; if you borrow money shareholders would ask for it debt is ALWAYS cheaper than Equity CFO o Know at every point where company is performing compare to history or competitor o Know how to fiancé Assign Role for case CEO Marketing Manager Banker Mid-term Exam Chap. 1-5...
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