In 2004 ibms financials reported total assets of 111003 and


1. In 2004, IBM's financials reported total assets of $111,003 and total liabilities of $79,315. Its market value of equity was $155,459. What was its liabilities-to-assets ratio, in book and market value?

2. Are firms partly financed by their nonfinancial liabilities? If so, how do you incorporate this into the firm's WACC?

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Financial Management: In 2004 ibms financials reported total assets of 111003 and
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