Answer:
Microsoft, being a large technology company, has various ways to finance its strategic investments. Here are a few common methods:
1- Microsoft's accumulated profits and cash flow from operations make up its cash reserves, which it may use to finance strategic initiatives. The corporation can be flexible and make investments without having to rely substantially on outside finance because to its cash reserves.
2- Debt Financing: Microsoft also has the option of raising capital through the issuance of debt, such as corporate bonds or loans from banks. Leveraging debt allows the business to access additional funding for its strategic projects while benefiting from low interest rates or tax breaks.
3- Equity Financing: Microsoft also has the option of raising money by issuing equity, such fresh shares of common stock. By using this strategy, the business can raise money from investors in exchange for ownership holdings, resulting in more money for strategic initiatives.
It's vital to remember that Microsoft's specific business plans may change based on their present financial situation, investment possibilities, and market circumstances. I suggest consulting Microsoft's official financial reports, announcements, and investor relations materials, which offer in-depth insights into the company's financial activities and investment strategies, for accurate and up-to-date information on how it is using its cash to finance strategic investments.