We are putting new tools into AT&T dispatch area, a massive shake-up for the decades-old effort, prompting employees and leaders to encourage people to think differently about change, and to embrace new tech that equips them with modern skills.
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"prompting employees and leaders" lol good one
Oop, effective interest rate, not tax rate
AT&It's free cash flow is running at only around $6B a year. If the effective tax rate rises to 6%, which is a fairly reasonable possibility for 2019, and much more likely for 2020, AT&T would be looking at $11B a year in interest payments.
Isn't ATT still pulling in 12 billion of profit each quarter? 180 in debt should not be a problem at all.
AT&T's already offering baby bonds at 5.4% coupon. And their effective interest rate was 4.7% last year. They'll probably blow past 5% in 2019.
That $9B isn't some pie in the sky estimate, if anything, it's super conservative. It's a certainty that's coming, and very soon. It'll be much higher than a mere 5% as the ZINF environment bonds from the 2008 era mature and get rolled over. Look at what happened to GE. AT&T will have to face that crisis in the next 72 months. That $9B will turn into $20B very quickly at the first sign of a downgrade.
Or were you perhaps thinking that AT&T has a brilliant plan to pay $180B of debt in the next 5 years?
We're you perhaps unaware that every bond has a maturity date?
Yep, More AI, Machines cities, and less humans, Welcome to AT&T's AI, not really artificial intelligence but Abnormal id--ts.
Since bond debt is fixed how do you conclude that ATT will pay 9 b more in interest on existing debt?
If interest rates go up to just 5%, AT&T will have to pay $9B a year just to pay the interest on its debt. How about bankruptcy and selling its network to Amazon? Think Jeff Bezos would go for that?