Question
Read this article https://drive.google.com/file/d/0B-l1xddhpZniVnlHVENreW84Y3lvampuQUJ3dkZCTUFuNVZ3/view?usp=sharing Answer the following questions: 1. What are the factors that likely explain the difference between Microsoft's market value of equity and
Read this article https://drive.google.com/file/d/0B-l1xddhpZniVnlHVENreW84Y3lvampuQUJ3dkZCTUFuNVZ3/view?usp=sharing
Answer the following questions:
1. What are the factors that likely explain the difference between Microsoft's market value of equity and its reported book value of equity?
2. Any comments on the company's revenue recognition policy? Provide a simple table with what-if scenarios for the years covered by the case.
3. What effect did Microsoft's software capitalization policy have on its financial statements? Include some financial information in your response.
Ignore any potential tax effects.
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