3 ms·
That's absolutely not at all how it works. If you tank your stock price you tank your ability to raise funds which tanks your debt. Your stock price is absolute
by jterrys 4y ago
That's absolutely not at all how it works. If you tank your stock price you tank your ability to raise funds which tanks your debt. Your stock price is absolutely important to running your company.
- olliej 4y agoI'd be interested in seeing the banks that say "we will give you a loan on the basis of your artificially inflated stock price, that is maintained by you giving out more dividends than you can afford at the cost of your long term revenue potential" vs "we will give you a loan on the basis of your long term ability to repay that debt". If on the other hand you mean "raising funds" by selling stock in the company, then obviously you need that stock to be valuable when you actually need to raise the funds, except intel is only able to maintain its present stock price by destroying it's future revenue potential. e.g. its stock _only_ has short term value at the moment because of over paying dividends, if it needs to "raise funds" it means it no longer has the cash for the BS dividend so its stock will be worthless then. Maintaining a dividend yield to enable fund raising, only makes sense if maintaining said yield doesn't require directly destroying the true value of the stock.