via The Economist: Apple’s bond issue – Pity the taxpayer
This is an interesting piece on “creative financing” by big multinational companies. Apple issued recently corporate bonds (debt) worth 17 billion dollars while sitting on a cash pile of 145 billion dollars. Why? Well, what looks like a contradiction makes perfect sense and is common practice. It is an effective way to dodge the taxman, subsidized by ordinary taxpayers. It is a good read if you can bear it.
Apple announced the other day that it will pay a dividend to its shareholders. It could have been a company communication like millions of others, but it wasn’t. There is only one Apple, a hugely successful company that hasn’t paid out a single nickel for 16 years. It is understood that the cash pile has risen to about 100 billion dollar (the GDP of Ireland stood at 180 billion in 2011). 45 billion dollar will be made available for payment over 3 years. I have 2 questions regarding this announcement, the first is economical, the second rather ethical. Continue reading
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