MSFT
Microsoft Corp
Price:  
429.03 
USD
Volume:  
26,514,968.00
United States | Software
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Microsoft WACC - Weighted Average Cost of Capital

The WACC of Microsoft Corp (MSFT) is 8.5%.

The Cost of Equity of Microsoft Corp (MSFT) is 8.65%.
The Cost of Debt of Microsoft Corp (MSFT) is 4.25%.

Range Selected
Cost of equity 7.40% - 9.90% 8.65%
Tax rate 15.40% - 17.20% 16.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.3% - 9.8% 8.5%
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 0.76 0.91
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.40% 9.90%
Tax rate 15.40% 17.20%
Debt/Equity ratio 0.02 0.02
Cost of debt 4.00% 4.50%
After-tax WACC 7.3% 9.8%
Selected WACC 8.5%