Microsoft to raise $3.75 BILLION for "acquisitions"

[DirtyP2002]

cgkc17 said:

MrBubbles said:

Shadowblind said:

I'm lazy. Can someone summarize this?

 

microsoft has 25billion dollars in cash.

they are taking on 3.75b in credit to go on a shopping spree.

if they have 25B in cash, why take on 3.75B in debt?

 

 

 It is cheaper and Retrun on equity will improve. So called Leverege Effect.

http://en.wikipedia.org/wiki/Leverage_(finance)