31. The correct rate for estimated the present valiue of a firm's cash flows is a. The weighted average coupon rate on bonds b. The weighted average dividend rate paid to shareholders c. The weighted average cost of capital Which of the following is not one of the four components of the weighted average cost of capital (WACC): 32. a. b. c. The cost of short term debt The cost of preferred stock The cost of retained earnings 33. The corporate tax rate has an effect on the: a. b. c. The cost of debt The cost of preferred stock The cost of common stock 34. Which of the following can be used to determine the component cost of common stock in the WACC: a. b. c. The standard deviation of the stock The CAPM Security Market Line The correlation coefficient between the return on the stock and the return on the market 35. The weights for each of the four capital components in the WACC are determined using the firm's: a. Statement of cash flow b. Statement of shareholders' equity c. The balance sheet 36. The direct costs of issuing new debt and equity are called: a. Tax costs b. Flotation costs c. Investment costs 37. The process of analyzing potential projects for a firm to invest in is called: a. Discounting payback b. Capital budgeting c. Dividend growth modeling