MSFT
Microsoft Corp
Price:  
407.57 
USD
Volume:  
15,641,686.00
United States | Software
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Microsoft WACC - Weighted Average Cost of Capital

The WACC of Microsoft Corp (MSFT) is 8.8%.

The Cost of Equity of Microsoft Corp (MSFT) is 8.95%.
The Cost of Debt of Microsoft Corp (MSFT) is 4.30%.

Range Selected
Cost of equity 7.40% - 10.50% 8.95%
Tax rate 13.50% - 14.90% 14.20%
Cost of debt 4.00% - 4.60% 4.30%
WACC 7.3% - 10.4% 8.8%
WACC

Microsoft WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.77 1
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 10.50%
Tax rate 13.50% 14.90%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.60%
After-tax WACC 7.3% 10.4%
Selected WACC 8.8%