Help Please!!: In August 2016, Microsoft Inc. sold $19.75 billion bonds to partially fund its...
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Help Please!!: In August 2016, Microsoft Inc. sold $19.75 billion bonds to partially fund its acquisition of LinkedIn Corp ($26.2 billion).
In January 2017, Microsoft Inc. issued another $17 billion in bonds (see the table below). Since most credit rating agencies rated Microsoft credit as AAA, bond interest managed to very favorable interest rates (the better the credit rating, the smaller interest rates the company could enjoy). Proceeds from the seven-part deal, ware expected to be used for general corporate purposes, including stock buybacks and refinancing (the repayment of short-term debt used to help fund Microsofts acquisition of LinkedIn Corp).
Please be clear when explaining. Thank you!
So far I got:
1: C
2: C
3: C
4. A
5. A
6. D
but I am not sure if all of these are right or wrong
Quiz+8+Debt (1) ut References Mailings Review View aBDdEAbDdE AaBb x2 A No Spacing Heading 1 Heading 2 Quiz 8 is based on Chapter 8 Debt financing Note: Each problem has only ONE correct answer. Please, pick the best answer Please use the folowing information to answer questions 1-4 In August 2016, Microsoft Inc. sold $19 75 balon bonds to partially fund its acquisition of Linkedin Corp 262 bilion). In January 2017, Miorosoft Inc. issued another $17 billion in bonds (see the table below) Since most credit rating agencies rated Microsoft credit as AAA, bond intorest managed to very favorable interest rates (the beter the credit rating, the smaller interest rates the company could enjoy). Proceeds from the seven-part deal, ware expected to be used for general corporate purposes, including stoex buybacks and refinancing (the repayment of short-term debt used to help fund Microsoft's acquisition of Linkedin Corp). Interest 1 85% Due date Maturity 3.30% 4 10% 4.25% 4, 50% 2027 10 years 2047 years 2057 Total 17 billion Effective: 3.45% n it issued $17 Stockholders' Equity Revenue 1-1 Expense Cash Prepaied 7 biltion OA operating activity nancing actvty 2 (1 point) How was accou eng equation impacted by the bond issuance? a. Assets increased, Vabiities increased, equity increased b. Assets increased, labilitios increased, equity decreased. Assets increased, labiities increased, equity unaffected. d. Assets decreased, labilties increased, equity unaffected 3. (1 point) The erectivo interest rate for bond issuance n January 2017 was 3.45% How much nil it cost Microson to serve its English (US) fs 8 9 0 V BN M Quiz+8+Debt (1) ut References Mailings Review View aBDdEAbDdE AaBb x2 A No Spacing Heading 1 Heading 2 Quiz 8 is based on Chapter 8 Debt financing Note: Each problem has only ONE correct answer. Please, pick the best answer Please use the folowing information to answer questions 1-4 In August 2016, Microsoft Inc. sold $19 75 balon bonds to partially fund its acquisition of Linkedin Corp 262 bilion). In January 2017, Miorosoft Inc. issued another $17 billion in bonds (see the table below) Since most credit rating agencies rated Microsoft credit as AAA, bond intorest managed to very favorable interest rates (the beter the credit rating, the smaller interest rates the company could enjoy). Proceeds from the seven-part deal, ware expected to be used for general corporate purposes, including stoex buybacks and refinancing (the repayment of short-term debt used to help fund Microsoft's acquisition of Linkedin Corp). Interest 1 85% Due date Maturity 3.30% 4 10% 4.25% 4, 50% 2027 10 years 2047 years 2057 Total 17 billion Effective: 3.45% n it issued $17 Stockholders' Equity Revenue 1-1 Expense Cash Prepaied 7 biltion OA operating activity nancing actvty 2 (1 point) How was accou eng equation impacted by the bond issuance? a. Assets increased, Vabiities increased, equity increased b. Assets increased, labilitios increased, equity decreased. Assets increased, labiities increased, equity unaffected. d. Assets decreased, labilties increased, equity unaffected 3. (1 point) The erectivo interest rate for bond issuance n January 2017 was 3.45% How much nil it cost Microson to serve its English (US) fs 8 9 0 V BN M
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