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IBM has a target capital structure of 40% debt and 60% common equity with no preferred stock. The yield to maturity on the companys outstanding
IBM has a target capital structure of 40% debt and 60% common equity with no preferred stock. The yield to maturity on the companys outstanding bonds is 9%, and its tax rate is 40%. IBMs CFO estimates that the companys WACC is 9.96%. What is IBMs cost of common equity?
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Entrepreneurial Finance And Accounting For High-Tech Companies
Authors: Frank J Fabozzi
1st Edition
0262336901, 9780262336901
