Examine the Microsoft's current capital structure (i.e., mix of debt and equity).

Your discussion should include an analysis of

Microsofts leverage-related ratios over the past three years (trend analysis) as well as compared to the same ratios of its two or three industry peers (peer group analysis),

the companys dividend policy, including its dividend payout ratios,

potential changes to the companys capital structure. That is, in the short run, is the company likely to borrow additional debt or pay off existing debt and/or issue new shares or repurchase outstanding shares? Base your answer on your projections of the companys financial needs, capital expenditures, and economic and interest-rate forecasts.