Attached are 2 articles from Sept/Oct of 2019.

One discusses Apple issuing new debt the other discusses AT&T generated funds to pay down debt.

After reading these articles please respond to the following:

1) The underlying question of this article appears to be why would a company like Apple, with so much cash on hand, seek to issue additional debt. How would you answer this question based on the M&M capital structure theory in the world of taxes?

2) AT&T on the other hand is looking to reduce its amount of outstanding debt. M&M state that in a world with no taxes (let's assume that for this question) that capital structure doesn't matter. If capital structure doesn't matter, then why is AT&T seeking to reduce its debt level? Does this make sense?

Module 9_oct 19 att debt.pdf

Module 9_sept 19 apple debt.pdf