Given the followind data, please calculate Microsoft's tax effected WACC Enterprise Value $2,125 Billion Total Debt $325 Billion Debt Interest Rate 3% Market Cap $1,800 Billion Cost of Equity 6% Tax Rate 20%

Given the followind data, please calculate Microsoft's tax effected WACC Enterprise Value $2,125 Billion Total Debt $325 Billion Debt Interest Rate 3% Market Cap $1,800 Billion Cost of Equity 6% Tax Rate 20%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 3P

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Question

Given the followind data, please calculate Microsoft's tax effected WACC

Enterprise Value	$2,125 Billion
Total Debt	$325 Billion
Debt Interest Rate	3%
Market Cap	$1,800 Billion
Cost of Equity	6%
Tax Rate	20%

Definition Definition Amount of return a company generally pays to its equity investors. The cost of equity represents the compensation required by the market in lieu of owning the asset firm and simultaneously bearing the risk of ownership.

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