Greenlight Company Presentation
Apple Keeps the Cash
o Complete strategic flexibility
o No repatriation
o Lower cost of capital
o No debt
o No default risk
o No refinancing risk
o No balance sheet risk
Greenlight Capital, Inc.
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The important benefit of iPrefs is they don't interfere with whatever Apple's business plan is. Because
the cash doesn't go out the door, Apple is free to invest it. Some have speculated whether the money
is for a large acquisition or a series of acquisitions.
We don't know what Apple's plans are, but iPrefs don't interfere with using the existing cash hoard. If
they want to do acquisitions, they can do acquisitions.
If Apple wants to keep its cash overseas, it can still do that.
If Apple wants to make one-time or recurring dividends or share buybacks, it can still do those things.
iPrefs will lower Apple's cost of capital, thereby reducing the opportunity cost of holding cash and
increasing Apple's financial flexibility.
We know that the company is debt averse. iPrefs are a form of equity, not debt. They have no
maturity and no refinancing risk or default risk, so the business itself is never put at risk.
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