Is borrowing money bad?
Do any of you have mortgages?
What about a 2% mortgage? That's what Apple is paying for the money they are borrowing.
After taxes its about 1%.
After the savings from not paying dividends they are actually MAKING MONEY floating bonds.
Stick to the facts.
Current cash balance at 12.31.13 = $159,000,000,000
Cash generated from operations in FY2013 = $53,000,000,000
Current Dividend payments per year = $10,600,000,000
Net cash generated in 2013 after dividend = $42,400,000,000
Current long term debt (Bonds) = 16,000,000,000
Now lets move this forward 5 years assuming flat earnings/cash flow:
12.31.13 balance = $159B
5 years of cash flow @ $42.4B = $212B
Cash balance = $371B
If Apple borrows $50B additional for 2014, total bonds = $66B
Net cash after paying off bonds = $305,000,000,000
Does Apple really need more than $305 Billion? WTF man.