Question
IBM 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;
IBM 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: 0.95; Risk-free Rate: 4.00%; Market Risk Premium: 6.00% Common Stock (Method 2) Long-run earnings growth: 8.00%; Expected Dividend (in one year): $2.00; Current Stock Price: $62.00 How much is IBMs pre-tax cost of debt? Enter your answer in the following format: 0.1234; Hint: Answer is between 0.0316 and 0.0395
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Mortgage And Interest Rates What You Should Know To Get A Risk Free Deal
Authors: Bert Rivers
1st Edition
979-8866678877
