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Sunday, March 10, 2019

Calculation and Report of Wacc of Microsoft

Bonds Microsofts long-term debt is composed of eight long-term bonds. It in like manner has two short-term bonds that mature this year and early next year. These bonds were miss in this report. In this report the required return was figure by using the coupon rates, foodstuff values, time until maturity, and tax rate. These values were all(a) found on Microsofts 2012 financial statement. The weighted average appeal of debt was then found by means of the multiplication of each bonds required return and their corresponding bond weights.These bond weights were found through the multiplication of the quantity of bonds at each interest rate and the market value of each bond this calculated value was then shared by the total amount of long-term debt, which gives the weights as a per centum of the total debt. Microsofts total debt was calculated to be lkasdfjlkasjdf, and the after-tax cost of debt was calculated to be asdfklsafd. These are logical calculations, since the majority of Microsofts bonds do, in fact, shit interest rates around 4%.Note, the interest on Microsofts bonds is incurred on a semi-annual basis and was calculated in this report on the same basis. Therefore, the semi-annual cost of debt would be half this value 2%. round other notes to consider in bond calculations are given downstairs Do we have any other notes to consider guys? Feel rationalize to message me, and Ill add them, or add them yourselves if you think on that point is anything else to include.

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