What would you do with $100 billion? Well, Apple have had to make that decision this week. So, let’s find out what it has decided to do by reading an extract from this article in the Guardian:
Apple has announced a plan to start handing back some of its cash hoard of almost $100bn to shareholders.
The company is to pay its first dividend to shareholders since 1995, three years before Apple started its record breaking run of new releases, which began with the iMac in 1998.
Tim Cook, the firm’s chief executive, said Apple would start paying a quarterly stock dividend of $2.65 a share beginning in July, and said Apple’s board had authorised a $10bn share buyback.
“We have used some of our cash to make great investments in our business through increased research and development, acquisitions, new retail store openings, strategic prepayments and capital expenditures in our supply chain, and building out our infrastructure,” said Cook. “Even with these investments, we can maintain a war chest for strategic opportunities and have plenty of cash to run our business. So we are going to initiate a dividend and share repurchase program.”
Shareholders – An individual or institution that owns part of a share of stock in a corporation.
Dividend – Payments made by a company to its shareholders.
Buyback – This is when a company purchases its own stock from shareholders.
From the quote it is obvious that Apple is in an incredible financial situation at the moment. After making investments, it has lots of cash left over that is going to be used to buy its own stock and shared it with its shareholders.
So, what would you do if you had $100bn? To answer this question correctly, it is important to know how to use the second conditional (a full explanation is given by clicking the link provided).
To take a look at what Apple could have done with that money (or more to the point, what $100bn is really like), click this link. If you had to choose one of those to spend $100bn on, which one would you choose?
Do you own an Apple product? If so, what do you like most about it? If you don’t, is there an Apple product that you would like?
Here is a video that uses a lot of business English. The presenter speaks quite fast so you might (and should) listen to it a few times.