CUPERTINO, CALIF — CUPERTINO, Calif. -- Apple Computer Inc. stock jumped yesterday after the company said it would repurchase up to 10 million shares, or 8 percent of its outstanding common stock, in the latest of a series of buybacks that began in 1986.
L Apple stock closed at $57.75, up $2.50 from Tuesday's close.
Apple spokesman Bill Slakey said the buyback "is a good use of our cash for the benefit of our shareholders."
Besides approving the buyback, Apple's board of directors also declared a dividend of 12 cents per share for the fourth quarter ended Sept. 25.
The dividend, 1 cent per share higher than last year's, will be paid Dec. 18 to holders of record as of the close of business on Dec. 4, Apple said.
Apple has repurchased 38.6 million shares of common stock since July 1986. The company had $1.4 billion in cash at the end of thefourth quarter and 118.5 million outstanding shares.
The current buyback will be in addition to the 1.4 million shares remaining to be repurchased from a 10-million share buyback program begun in September 1990, Apple said.
Mr. Slakey said the buybacks are intended to dilute the impact from the exercising of stock options and employee share plans.