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plz answer earlier with working on word thanks,its urgent plz IBM company's Stock and Bond information is provided below: Bond Time to Maturity: 20-years; Annual

image text in transcribedplz answer earlier with working on word thanks,its urgent plz

IBM company's Stock and Bond information is provided below: Bond Time to Maturity: 20-years; Annual Coupon Rate: 7.00%; PAR Valu e: $1,000; Current lx trading at: $1275.54 Preferred Stock Preferred Stock Price: $64.0 0; Preferred Annual Dividend: $3.50 Common Stock (M et hod 1) Equity Beta: 1.2; Risk-free Rate: 3.00%; Market Risk Pre m iu m: 6.00% Common Stock (Method.m2) Long-run earnings growth: 7.00%; Expected Dividend {in one year): $2.10; Current Stock Price: $57.66 A)How much is IBM's pre-tax cost of debt? Enter your answer in the following format. 0.1234 Hint: Answer is between 0.0424 and 0.053 B) How much is IBM's cost of common stock? Enter your answer in the following format; 0.1234 Hint: Use 'Method2'. Answer is betwee111 0.0938 and 0.1132 CiWhich of the following is a TRUE statement, based on the "Du pont - Case Study"? E. For a typical firm, Cost of Debt> Cost of Preferred Equity Cost of Preferred Equity> Cost of Common Equity H. Forr a typical firm, Cost of Debt Cost of Preferred Equity> Cost of Common Equity

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