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I would argue that their cost of capital is 1.55% for a five year tenor, or 3.45% for a 30 year tenor. http://www.bloomberg.com/news/articles/2015-02-02/apple-
by tacostakohashi 11y ago
I would argue that their cost of capital is 1.55% for a five year tenor, or 3.45% for a 30 year tenor.
http://www.bloomberg.com/news/articles/2015-02-02/apple-said-to-plan-5-billion-bond-offering-in-fourth-since-2013 http://www.bloomberg.com/news/articles/2015-02-02/apple-said...
For 30 days, it would of course be even lower, but not zero.
- thedogeye 11y agoThat's what they borrow at, but presumably they're doing so because they can invest it at a higher return. It's the opportunity cost that we care about.