1. In addition to current operating performance, firms must never lose site of organizational goals and the need to maintain distinctive competencies. For that reason, firms must always be looking toward the future and ensuring success down the road. With that in mind, what investments did IBM make in 2020 to fund future growth and increase shareholder value?
2. How does Standard & Poor's rate IBM's senior long-term debt, preferred stock, and commercial paper?
3. Briefly describe IBM's investment in new software research, development, and engineering. Did IBM amortize more or less capitalized software costs during 2020 compared to 2019? Why was there a difference?
4. To analyze the sources of specific risk, IBM uses sensitivity analysis to determine the impact of different market risk exposures on the fair value of the company's assets. What kind of financial instruments are included in this sensitivity analysis?
5. Explain IBM's process of sensitivity analysis.