What has been the Free Cash Flow to the Firm and the Free Cash Flow to the Equity for Microsoft Corp. for the past 5 years? Use the charts below to answer.

Use any of the methods listed below to solve for both Free Cash Flow:

FCFF (Free Cash Flow to the Firm)

Method 1: Using OCF

FCFF = OCF - Net Working Capital Investment (net change in current assets - current liabilities).- Net Fixed Capital Investment.

Method 2: Using Net Income (CFA method)

FCFF = Net Income + Non- Cash Charges + Interest Expense (1 - Tax Rate) - Net Fixed Capital Investment - Net Working Capital Investment.

Method 3:

FCFF = Cash Flow from Operations (CFO) + Interest Expense (1 - Tax Rate) - Net Fixed Capital Investment - Net Working Capital Investment

Method 4:

FCFF =

Net Income + Depreciation + Net After-Tax Interest Payments -(Change in Current Assets + Change in Current Liabilities) - Fixed Capital Investment.

Method 5:

FCFF = EBITDA (1-Tax Rate) + Depreciation(Tax Rate) - Net Working Capital Investment - Fixed Capital Investment.

FCFE (Free Cash Flow to Equity)

1. Method 1

FCFE = Net Income + Net Non-Cash Charges - Net Working Capital Investment - Net Fixed Capital Investment + Net Borrowing.

Method 2

2. FCFE = Cash Flow from Operations - Net Fixed Capital Investment + Net Borrowings.

3. Method 3 (CFA method)

FCFE = FCFF - Interest Expense(1-Tax Rate) + Net Borrowing.