Current share price is about $20. So for the $6 billion you retire 300 million shares. There are about 5 billion total shares outstanding so you retire 6% of your shares.
Effective interest rate on the $6 billion in bonds is approx. 2.4%. The stocks dividend is 0.90 cents per share which equals a dividend yield of 4.6% .
Think of it as a small company where you own 94% of the company and a partner who has a 6% share of your company. You can take out a loan for $100k and pay 2.4% ($2,400 per year) to the bank. or keep paying him a dividend (his share of earnings) at $4,600 per year. Kind of a no-brainer in terms of immediate cash flow. Plus after 10 years when you've paid off the loan you now own 100% of your company.
When you think of it that way it's really a slam dunk for Intel.
For Intel, their cash flow for 2011 was approx. $20 billion so they can obviously afford to pay back the loan.
What's new about this? You've been able to make and share public links for awhile, right?
Is it just this part: "Beautiful online viewing
When you create a link, your photos, videos, and even documents are displayed in a gorgeous full-browser view. Your friends and family can simply follow your links to view photos and instantly watch home videos online. Even your presentations look great without anyone having to download and open them separately."
Effective interest rate on the $6 billion in bonds is approx. 2.4%. The stocks dividend is 0.90 cents per share which equals a dividend yield of 4.6% .
Think of it as a small company where you own 94% of the company and a partner who has a 6% share of your company. You can take out a loan for $100k and pay 2.4% ($2,400 per year) to the bank. or keep paying him a dividend (his share of earnings) at $4,600 per year. Kind of a no-brainer in terms of immediate cash flow. Plus after 10 years when you've paid off the loan you now own 100% of your company.
When you think of it that way it's really a slam dunk for Intel.
For Intel, their cash flow for 2011 was approx. $20 billion so they can obviously afford to pay back the loan.