David Einhorn Wants Apple Shareholders To Vote On Voting On Issuing Preferred Stock » Essay question: does committing to pay $2bn a year in extra common stock dividends have the same effect? Why or why not?

Essay question: does committing to pay $2bn a year in extra common stock dividends have the same effect? Why or why not?

Comments (1)

  1. Posted by Recon5x5 | February 7, 2013 at 12:29 PM

    If AAPL gives shareholders 100% of the cash on its B/S, and the PE remains constant, then the stock price doesn't move. Better yet, suppose AAPL just makes a giant bonfire out of their cash. Does the stock price stay constant?

    That makes no sense and neither does Einhorn.

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