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What's happening to Apple's share price?

Karen Haslam | April 22, 2013
Last night Apple's share price declined to $392.05, wiping 44.16% or $310.05 of the value of each AAPL share since September 2012 (the stock closed at $702.10 on 19 September), and dropping to its lowest level since December 2011. In the first quarter of the year Apple was one of the worst performers of the S&P 500 in what is being described as a crisis among investors.

3) Raise its dividend

The company has lots of cash and investors want to see some of it. However, having $137 billion 'in the bank' doesn't mean that the company can pay out large sums to investors: much of that cash is held off shore and there will be tax implications in bringing it back to the US (69% of Apple's cash is held overseas). Also, much of the cash is in investments and bonds, and Apple may have plans for more acquisitions like WIFISlam.

However, if it doesn't pay some out soon investors may start to worry about why Apple is being so protective of its cash.

 

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