Discuss the various cost of capital techniques used in the high technology field (Microsoft, Google, et al) and why they choose their approach. What are the disadvantages?|||This has to do with WACC and APV probably.
Their advantages and disadvantages stem from changing or constant levels of debt. For companies like MSFT and Google who don't have much debt, you probably want to just stick with WACC because it's easier to implement. If you know the debt ratios and they're changing over time for a particular debt company, then go APV.
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