Final answer:
The question addresses the justification of Apple's resistance to cash distributions like iPrefs. The debate centers around the management of Apple's large cash reserves, shareholder value, and the company's strategic future investments and acquisitions.
Step-by-step explanation:
The question relates to whether the decision by Apple to resist cash distributions, and specifically the issuance of preferred stocks called iPrefs, proposed by David Einhorn of Greenlight Capital, was justified. The reluctance to agree with Apple's resistance may stem from different strategic, financial, and philosophical perspectives.
Proponents who disagree with Apple's stance could argue that the tech giant is sitting on a large cash reserve which could be used to reward shareholders through dividends or buybacks, thus potentially increasing shareholder value.
Conversely, Apple's cautious approach might be defended on the grounds that retaining cash reserves ensures ample flexibility for future investments, acquisitions, and research and development, which in the long term could lead to greater company growth and shareholder value.
Moreover, the debate taps into a broader discussion around corporate governance and shareholder rights, with some investors advocating for a greater say in the decisions around the use of cash. It exemplifies fundamental questions regarding a company's responsibilities to its shareholders and its strategic direction.