7, IBM expects earnings this year of $5.00 per share, and it plans to pay a $1.50 dividend to shareholders. IBM will retain $3.50 per share of its earnings to reinvest in new projects that have an expected return of 12.0% per year. Suppose IBM will tnantain the same dividend payout rate, retention rate, and return on new investments and will not change its number of outstanding shares. If IBM's equity cost of capital is 11.0%, what price would you estimate for IBM stock? . A) S20.27 B) $47.30 C) $57.69 D) $134.62 8. Which of these bonds has the greatest interest rate risk all else equal