Microsoft Finance Internship Mock Interview
Practice 30 Microsoft Finance Internship interview questions covering Excel modeling, financial analysis, and behavioral scenarios.
Question 24 of 30
Why would Microsoft finance acquisitions rather than use the $130+ billion in cash they currently have?
Example Answer
Why the Interviewer Asks This Question
How to Answer
Community Answers
Kevin Downey has an extensive background in business management, recruiting, branding and marketing. He's volunteered his career coaching services at job fairs, lecturing on interview techniques and crafting winning resumes and cover letters.
"One reason could be to lower their tax bill. If Microsoft chose to use such funds which would be parked overseas, they could potentially pay a 35% tax on the repatriation of cash from overseas accounts. By using debt to finance such an acquisition, a company could list such interest payments among their tax deductions, further lowering their taxes. This could even save a company millions of dollars by continuing to use such interest deductions to this end."
Kevin Downey has an extensive background in business management, recruiting, branding and marketing. He's volunteered his career coaching services at job fairs, lecturing on interview techniques and crafting winning resumes and cover letters.
This topic made headlines not long ago when Microsoft made moves to acquire LinkedIn. Therefore, this question tests how plugged in you are to industry-related developments, especially one that involves the very company you are interviewing with.
Kevin Downey has an extensive background in business management, recruiting, branding and marketing. He's volunteered his career coaching services at job fairs, lecturing on interview techniques and crafting winning resumes and cover letters.
Do your research and read up on the topic, rehearsing your answer in advance. Take notes and formulate how you would answer this question in your own words.
Interview Coach
Jaymie
A real coach, not AI. I read every answer myself and write back with personalized feedback.
Typically responds within 24 hours.
0 - Character Count
Unlock All 30 Microsoft Questions
Master technical finance questions that Microsoft recruiters use to select interns.
Get StartedJump to Question