Salesforce Issues Debt To Fund Buyback

Salesforce this week executed initial steps of a debt-funded $25 billion accelerated stock buyback, part of a $50 billion repurchase authorization approved in February. Management says the move lowers the company's weighted average cost of capital—debt yields about 6.7% pre-tax (roughly 5.3% post-tax) versus a roughly 9.27% cost of equity—boosting EPS but prompting an S&P downgrade.