Salesforce Debt

[Adam Boscoe]

All,

A quick technical question on CRM's financials.  It doesn't have a huge impact on the valuation, but want to know how others are handling the debt cost for Salesforce.  The company has virtually no long-term outstanding debt, except for M$575 of convertible notes paying .75% annually.  Doesn't seem accurate to report .75% as the cost of debt (particularly since the convertible option has inherent value), but given the lack of other LTD, I'm not sure how to finalize the WACC.

Thanks for your thoughts,

Adam

[C. Dambolena]

Thanks to Ryohei: At the bottom of page 81 of CRM's 10-K they report 5.86% effective interest rate on the same debt without the conversion feature.

[Adam Boscoe]

Thanks to you both.  Good catch.