Final Research Paper

Running Head: RESEARCH PAPER PART 3 PAGE 1

RESEARCH PAPER PART 3 PAGE 5

Research Paper: Part III

Apple Inc.

Introduction

Apple is one of the renown successful companies around the globe. This is one of the organizations that is known for its ability to provide the best gadgets with regard to technology. This is a multinational organization. Apple Inc. is in charge of creating different designs, developing them and even selling them to different consumers. The organization for a long period of time has been in a position to be among the best technology companies. In most of the cases, consumers really wait for the current gadgets for them to buy (Li & Wang, 2019). Apple Inc. is in the same category of companies as Amazon, Google, Facebook and Microsoft.

The Reflections of the Ratio

Sometimes it can be really difficult to determine the profit that Apple Inc. actually makes. It can also be a challenge to determine the value of shares that a firm has. Sometimes it can be difficult to determine how successful the organization is when it comes to the prices of the stock. This is due to the fact that the stock prices of different products that the organization offers can be divided and sparsely distributed. The current ratio of stock division of Apple Inc. does not in any way appear to be impressive as it is supposed to do as one of the biggest and most successful organization, or as it would have done ahead of the four different stock divisions that it had (Schauer et al., 2018). This has really led the organization to look for different ways in which it can be in a position to adjust to the split of figures to give an account for the split of different stocks which in the end enables work to be done to have return on the investment.

The Appearance of the Company and Whether it is Headed in the Right Direction

There have been some adjustments in the stock figures of Apple Inc. as a company. There was one stock that was purchased during IPO. This led to an increase in the shares to 56. The different stakeholders of the organization have been in a position to observe incredible returns on the investment that they have put in the organization. The split of different products by Apple Inc. has been of great significance in terms of the profits and the general success of the organization. This happened when the split went public for the first time for a very long period of time. There are very few shares that are present in the organization (Yahoo Finance, 2020). This means that the organization is required to pay an additional $104.3 million lesser in the dividend payment. The issuing and availability of the authorized stock has greatly affected the stock buybacks. This is because of the fact that there has been a dilution of the value of different outstanding shares and thus negative effect.

According to my view, individuals should take their time before making a decision to invest in Apple Inc. This is because the organization needs to take its time to figure out better ways that it will be in a position to utilize the little funds that it has, or even make a reduction in the different prices allocated to its shares to an affordable price. When it comes to the prices of stocks, both Apple and Amazon have been appreciating, and as a result of this there have been very high valuations (Macrotrends.net., 2020). The valuations of Apple are slightly lower when compared to those of Amazon. In other words, this means that individuals who are considering to invest may prefer starting from this point. Apple stocks have a fast moving and forward price-earning when compared to the other competitive companies. Different organizations have different business models which can help them successfully achieve high valuation expectations.

References

Li, L., & Wang, Z. (2019). How does capital structure change product-market competitiveness? Evidence from Chinese firms. PloS one, 14(2), e0210618. Retrieved from https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0210618

Macrotrends.net. (2020). Apple Investing Activities - Other 2006-2020 | AAPL. Retrieved from https://www.macrotrends.net/stocks/charts/AAPL/apple/investing-activities-other

Schauer, B., Zielinski, B., & Kolb, K. (2018). Apple Incorporated, AAPL. UWEC. Retrieved from https://www.indstate.edu/business/sites/business.indstate.edu/files/Docs/SMIFC2018-1-UWEC-paper.pdf

Yahoo Finance. (2020). Apple Inc. (AAPL). Retrieved from https://finance.yahoo.com/quote/AAPL?p=AAPL