Thursday, January 20, 2011

Interesting Links-5 (20/01/2011)

Corporate Finance:
Optimal cash holdings: A case of Apple Inc.: Currently Apple Inc.'s balance sheet reports that it has the cash balance of $50 billion and is expecting addition of another $20 billion by the end of the year, taking the cash balance to $70 billion. This cash amount is virtually not generating any interest income (merely 0.5%) when compared to the cost of capital of Apple Inc. This situation raises many eye brows. Though Apple being a growth firm, does it require such a huge cash balance?

1. Take of few portfolio managers who are holding considerable worth of Apple's stock. [Link]
2. Prof. Damodaran's views on the same. [Link]

India Focus:

3. Why do the people (Indians) behave the way they behave? RIM suspended the talks with Indian Government. [Link]
4. Confusing environmental policies of Indian Government. [Link]
5. In October, 2010, RBI set up a committee under the chairmanship of Mr. Y.H. Malegam to look into the practice of MFIs, charging of (high) interest rates, (coercive) recovery procedures; and recommend the potential policy changes. The committee submitted its report, you may check its recommendations here. [Link], [Link]

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