Case

Apple's capital return programme

In March 2012 Apple announced it would start paying a dividend and repurchasing shares. Its quarterly report to 26 March 2016 describes the company's commercial paper programme.

Industry
Consumer technology
Frameworks applied
Dividend policy theoriesCapital structure theoriesThe three core finance decisions
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Frameworks applied

This case is read through the frameworks below.

  • Dividend policy theoriesWhen the company makes a profit, should the board pay it out as dividends or keep it for reinvestment, and what will that payout signal to investors?
  • Capital structure theoriesWhen a CFO needs funding to expand, should the firm borrow more or issue shares, and is there an optimal debt–equity mix for it?
  • The three core finance decisionsWhen drawing up the annual financial plan, how should a CFO decide what to invest in, whether to fund it with debt or equity, and how much profit to pay out to shareholders?

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Apple Inc. (2012) Apple announces plans to initiate dividend and share repurchase program (19 March). Press release.No DOIapple.comSource page
  2. Apple Inc. (2016) Form 10-Q for the quarterly period ended 26 March 2016. SEC EDGAR (Form 10-Q).No DOIsec.govSource page