In this question we will re-evaluate MSFTs performance for the year ending on June 30, 2000.

Using the pro-forma amounts you calculated when answering question three, recalculate the KPIs listed below. Please enter your answers in the Excel file named Answers.

NOPAT margin.

NOA turnover.

Return on net operating assets (RNOA).

Net financial rate (NFR).

Financial leverage (FLEV).

Return on equity (ROE).

Based on your answer to (4.a), how would you describe Microsofts performance? Please write your answer in the space below.

Is it surprising that companies do not want to use derivatives accounting for ESOs? Explain. Please write your answer in the space below.