Apple: Future External Financing Needs and Access to Target Sources of External Finance

FINANCIAL ANALYSIS
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Future External Financing Needs
Given the current trajectory of Apple's growth, it seems reasonable to anticipate that the company will require continued external financing to sustain its expansion. Apple has astutely leveraged the low-interest-rate environment, issuing bonds and notes to secure capital with minimal associated costs (Apple.com, 2022). However, as Apple's ambitions for growth encompass expansion into new areas of innovation, such as 5G technology and silicon engineering, the company will need to explore alternative financing sources to realize these goals.
Apple might persist in issuing bonds or notes, enabling the organization to procure funds at a fixed interest rate over a predetermined timeframe. The feasibility of this course of action is supported by Apple's prior success with this approach and the current persistence of historically low rates. Nonetheless, Apple must contemplate the ramifications of accruing further debt on its balance sheet, particularly the potential implications for its credit rating and subsequent capacity to obtain financing.
Another avenue for Apple to generate capital is through issuing new stock shares. While this strategy would permit the company to avoid incurring additional debt, it comes with its own considerations. For instance, though Apple's stock has demonstrated strong performance in recent years--which may make the issuance of new shares attractive--such a move would ultimately dilute the ownership stakes of current shareholders. Thus, this potential drawback must be considered when weighing this option's feasibility.
Bottomline is that Apple will continue to have external financing needs in the future as it looks to maintain its growth trajectory and invest in innovative new technologies. The company will need to carefully weigh its options to determine the best way to raise the capital it needs while minimizing any negative impacts.
Access to Target Sources of External Finance
In part, Apple's asc...