The section of Microsofts Form 10-K relating to managements discussion and analysis provides detail as to factors

Question:

The section of Microsoft’s Form 10-K relating to management’s discussion and analysis provides detail as to factors that might affect Microsoft’s future and, as a result, the company’s long-term decisions. Review the and the “Management Discussion and Analysis’’ section in Microsoft’s most recent 10-K, and answer the following questions:
1. Microsoft has very low long-term debt. Does that mean its is very low? Explain.
2. Microsoft specifically states that the company “does not provide forecasts of future financial performance.” If that is the case, how can it make any decisions?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...