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german
3 months ago
12

Here is the capital structure of Microsoft. What part of the $117.67 share price (to the nearest dollar) is represented by cash?

Business
1 answer:
marusya05 [3.7K]3 months ago
7 0

Answer: $17 (to the nearest dollar)

Explanation:

The cash component of the stock price is derived using the formula;

Cash = \frac{Cash and Cash Equivalents}{Market Capitalisation} *Share Price

Cash = \frac{127,662,000,000}{902,635,911,922} *$117.67

Cash = 16.642355

Thus, rounding gives: $17 (to the nearest dollar)

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