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For IBM, find the following items (Hint: Try using Yahoo Finance & FINRA) which are required for you to calculate the Weighted Average Cost of
For IBM, find the following items (Hint: Try using Yahoo Finance & FINRA) which are required for you to calculate the Weighted Average Cost of Capital (WACC):
- Shares outstanding = .
- Stock price = $..
- Equity = $..
- Debt = $..
- Preferred stock $..
- Equity beta ..
- Market risk premium = 5%
- US treasury yield (10-year) = %
- Cost of equity (CAPM) ...%
- Pre-tax cost of debt = 2.25%
- Tax rate ..%
- Credit rating
- Cost of preferred stock %
- WACC = ..%
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