Well, I don't know who gave me the thumbs down for my previous post and I guess it doesn't matter, but I really do want to know why this makes financial sense.
Rather than concentrating on their core business which appears to be quite profitable, Microsoft now seems as if managing the huge stockpile of cash is coming to the forefront in some obscure way.
And rather than increasing their dividend to shareholders currently at 2.7%, they will be paying interest to bondholders which I think most likely will be greater than 2.7%
The insanity continues. Microsoft has $25 billion in cash and until they raised $2 billion last year they had 0 debt. Now they want to raise $3.75 in a bond offering?
If they aren't making more in interest or dividends on the cash than the interest they will pay on the bonds, someone enlighten me as to how this makes sense.
Monday's Closing Update [View article]
seekingalpha.com/artic...
The same questions raised and discussed.
Monday's Closing Update [View article]
Rather than concentrating on their core business which appears to be quite profitable, Microsoft now seems as if managing the huge stockpile of cash is coming to the forefront in some obscure way.
And rather than increasing their dividend to shareholders currently at 2.7%, they will be paying interest to bondholders which I think most likely will be greater than 2.7%
Intelligent replies appreciated.
Monday's Closing Update [View article]
If they aren't making more in interest or dividends on the cash than the interest they will pay on the bonds, someone enlighten me as to how this makes sense.