More from these Authors

• Case | HBS Case Collection | October 2020

  Investing at Pivotal Ventures

  Emil N. Siriwardane, Emily R. McComb and Eren Kuzucu

  Citation:

  Siriwardane, Emil N., Emily R. McComb, and Eren Kuzucu. "Investing at Pivotal Ventures." Harvard Business School Case 221-033, October 2020.  View Details

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• Case | HBS Case Collection | February 2019 (Revised December 2019)

  The Bankruptcy of Cumulus Media

  Emily McComb

  Keywords: bankruptcy;

  Citation:

  McComb, Emily. "The Bankruptcy of Cumulus Media." Harvard Business School Case 219-093, February 2019. (Revised December 2019.)  View Details

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• Case | HBS Case Collection | November 2019

  Apple, Einhorn, and iPrefs (Abridged)

  Carliss Y. Baldwin and W. Carl Kester

  In March 2013, Apple Computer has a very large cash balance, and is under pressure to return cash to shareholders. Hedge fund manager David Einhorn thinks Apple can "unlock value" by issuing perpetual preferred stock, dubbed iPrefs. Henry Blodget, CEO of Business Insider, disagrees, saying "you can't just wave your magic wand and make something of nothing." This short case is designed to support a discussion of "perfect" markets and the Modigliani-Miller capital structure irrelevance propositions. The case focuses on two questions: (1) From a shareholder's perspective, how is Apple's cash different from cash in a bank or money market account? (2) Can Apple create significant value for shareholders by splitting each common share into an iPref plus a common share?

  Keywords: markets; Stock Shares; Value Creation; Business and Shareholder Relations;

  Citation:

  Baldwin, Carliss Y., and W. Carl Kester. "Apple, Einhorn, and iPrefs (Abridged)." Harvard Business School Case 220-043, November 2019.  View Details

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