MSFT
Microsoft Corp
Price:  
415.49 
USD
Volume:  
18,398,176.00
United States | Software
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Microsoft WACC - Weighted Average Cost of Capital

The WACC of Microsoft Corp (MSFT) is 9.1%.

The Cost of Equity of Microsoft Corp (MSFT) is 9.25%.
The Cost of Debt of Microsoft Corp (MSFT) is 4.25%.

Range Selected
Cost of equity 7.60% - 10.90% 9.25%
Tax rate 15.40% - 17.20% 16.30%
Cost of debt 4.00% - 4.50% 4.25%
WACC 7.5% - 10.7% 9.1%
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 0.81 1.08
Additional risk adjustments 0.0% 0.5%
Cost of equity 7.60% 10.90%
Tax rate 15.40% 17.20%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 4.50%
After-tax WACC 7.5% 10.7%
Selected WACC 9.1%