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Apple Computer CEO Steve Jobs announced he was taking a leave of absence for health reasons. Jobs has been fighting cancer and also recently underwent a liver transplant. Even though the computer giant is in good hands with Chief Operating Officer Tom Cook taking over the stock price fell by US$6.40, or nearly two percent, on the news.
Jobs is widely known as a visionary and a micromanager. Under his leadership Apple has transformed the computing industry. While Jobs' health outlook is unknown many investors are betting on his recovery and return. Those who bought Apple stock when Jobs stepped down in 2004 for health reasons made a nice profit when he returned to the helm.
Question 2 Marks
“When a financial manager makes good or bad financial decisions the impact of these decisions will be reflected in the company's Stock price”.
Do you agree with the decision taken in the above case? What decisions you will take to improve the stock price of Apple Computers in this situation?
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