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  "documentTitle": "Apple Inc. (AAPL)",
  "authorId": "04_Greenlight_Capital",
  "authorName": "David Einhorn",
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  "presentationDate": "2013-02-21 00:00:00",
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  "notes": "The slide uses a table to compare two scenarios (1:1 and 5:1 ratio of iPrefs to Common Stock) to argue for the safety of the proposed financial instrument.",
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      "text": "Remember that the issuance of the iPrefs doesn't require Apple to actually use any of its existing $137 billion of cash.",
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      "text": "Apple would still keep its $137 billion of cash\nDividend payout ratio is key\nFree cash flow more than covers the iPref dividends\nDifficult to envision Apple burning cash or losing money",
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      "text": "iPref dividend payout ratio: 4%",
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      "text": "We think Apple could eventually support even more iPrefs without harming the required yield.",
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      "text": "iPref holders will be most concerned about Apple's ability to continue paying the 4% dividend. Apple has $137 billion of cash and earns over $40 billion a year (and it is all cash). At our case of a $236 billion preferred with a 4% dividend, it is a $9.5 billion annual commitment. On that basis, Apple would pay out less than a quarter of its earnings and will have 15 years of iPref dividends sitting on the balance sheet in cash.",
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      "text": "Remember that the issuance of the iPrefs doesn't require Apple to actually use any of its existing $137 billion of cash. Thus even a very large issuance of iPrefs preserves Apple's financial flexibility and wouldn't pose any great financial risk to the company.",
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      "text": "Ratio of iPrefs : Common Stock 1:1 5:1; iPrefs issued ($ billions) $47.2 $236.3; iPrefs dividends paid by Apple $1.9 $9.5; Apple free cash flow $45.0 $45.0; iPref dividend payout ratio 4% 21%; Total cash on balance sheet $137.1 $137.1; Years worth of iPref dividend payments 73 15",
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      "text": "iPrefs Would Be Very Safe, Even at This Scale",
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