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Can someone please explain why IBM raised their long term debt by almost $8bn in last one year , while keeping their revenues and gross profits almost static ?
by manishsharan 12y ago
Can someone please explain why IBM raised their long term debt by almost $8bn in last one year , while keeping their revenues and gross profits almost static ? I am assuming that the interest rate for that $8B is pegged at near zero rate -- what happens when the rate goes up by one percent ?
- vo1aQXJ3 12y agothe money was raised to buy back shares. That is actually a better investment (saves on dividents, and you don't have to bring back any cash to the US). But yes... what if interest rates rises... either buy back less shares (or sell them again), but that is not really an option with the EPS target. Maybe some IBM exec can answer this for us