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Saturday, Feb 9
Aswath Damodaran isn't crazy about David Einhorn's Apple (AAPL) preferred stock proposal....
Aswath Damodaran isn't crazy about David Einhorn's Apple (AAPL) preferred stock proposal. "Issuing preferred stock will not add value to the company," the finance prof. argues. Moreover, while such a move could lift shares by removing investor fears of never seeing much of the cash Apple generates, regular dividends and/or buybacks could do the same. Nonetheless, Damodaran is glad Einhorn is "rocking the boat," as it "opens the door to a healthy discussion about how Apple should deal with its large and growing cash balance." (previous)