Question
BM company's Stock and Bond information is provided below: Bond Time to Maturity: 15-years; Annual Coupon Rate: 6.00%; PAR Value: $1000; Currently trading at: $1275.54;
BM company's Stock and Bond information is provided below: Bond Time to Maturity: 15-years; Annual Coupon Rate: 6.00%; PAR Value: $1000; Currently trading at: $1275.54; Corp Tax Rate: 25.00% Preferred Stock Preferred Stock Price: $65.00; Preferred Annual Dividend: $3.50 Common Stock (Method 1) Equity Beta: 1.3; Risk-free Rate: 3.00%; Market Risk Premium: 6.00% Common Stock (Method 2) Long-run earnings growth: 7.00%; Expected Dividend (in one year): $2.20; Current Stock Price: $61.00
How much is IBMs pre-tax cost of debt? Enter your answer in the following format: 0.1234;
Hint: Answer is between 0.033 and 0.0392
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Handbook On Anti Money Laundering And Combating The Financing Of Terrorism For Nonbank Financial Institutions
Authors: Asian Development Bank
1st Edition
9292577611, 978-9292577612
