Reference no: EM132799568

Company selection: Microsoft (MSFT) Estimate the Weighted Average Cost of Capital (WACC) Please use Excel template Gather necessary information (cost of equity, cost of preferred stock if any, cost of debt, and weights on each component, and tax rates) for your company and calculate the Weighted Average Cost of Capital (WACC). You can find capital structure information from the most recent consolidated balance sheet (annual) of your company.

Finding the cost of debt is a difficult task. I would start with the company's latest annual 10-k and search for the most recent senior notes. Similarly, tax rates may be found in 10-K. For example, if I want to find the cost of debt for United Steel Corporation, I find 6.875% under Capital Structure and Liability. Similarly, I find 35% tax rate under 8. Income Taxes section in the 10K.

For more information, check the following link: https://www.sec.gov/Archives/edgar/data/1163302/000116330214000010/x2013123110-k.htm

You may use the following link to find your companies' filling including 10-k: https://www.sec.gov/edgar/searchedgar/companysearch.html

You may use Effective Tax Rate - 5 Yr. Avg. which could found in Reuters where you find dividend growth information. To calculate % debt and equity, use the balance sheet which can be found in the company's 10K.

Note: Please feel free to use data from other resources. However, you must provide appropriate references. Please document all your sources of information and any assumptions you made in developing the WACC.