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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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