A problem with Einhorn's plan is that Apple shareholders would sell common Apple shares, and maybe buy more preferred Apple shares or VZ (Verizon) or anything other than Apple. Maybe Apple common shares would go to 50.00 per share if Cook was dumb enough to buy Einhorn's plan.
Einhorn thinks that his IPref plan will attract a lot of new value and income investors which has merit. I think a regular dividend increase would also attract some of the same investors. His plan will also allow shareholders to sell their preferred shares in the market if they want additional capital.
Here is my 4 point plan to get AAPL back to above $600:
AAPL should double their buy-back plan and start using the plan now at current share prices.
AAPL needs to buy CRUS for $2.5M - This would encourage investors that AAPL is using their cash, and is helpful to increasing margins
AAPL should increase dividend to 5% per year
AAPL should have their major executives buy shares at this time to show faith
This would satisfy all and get Einhorn off their back too.
The question that needs to be asked is your bank account yielding .25% a safer place to be than AAPL yielding 3.3% ($15annual divi/$450). AAPL is acting as my bank account, all savings are parked there. Over time it will collect yield and generate a rate of return from appreciation.