36) 36) The weighted average cost of capital for a company is least dependent upon the: A) company's beta. B) standard deviation of the company's common stock C) coupon rate of the company's outstanding bonds. D) growth rate of the company's dividends. E) company's marginal tax rate. 37) POD has a project with the following cash flows: 37) Year 0 Cash Flows -$269,000 146,100 163,600 128,700 The required return is 8.9 percent. What is the profitability index for this project? A) 1.267 B) 1.382 C) 1.152 D) 0.724 E) 0.904 38) A project that costs $17,500 today will generate cash flows of $4500 per year for seven 38) years. What is the project's payback period? A) 0.26 years B) 3.11 years C) 3.24 years D) 3.89 years E) 4.00 years 39) The depreciation tax shield is best defined as the: 39) A) amount of tax that is saved because of the depreciation expense. B) tax that is avoided when an asset is sold as salvage. C) amount of tax that is due when an asset is sold. D) amount by which the aftertax depreciation expense lowers net income. E) amount of tax that is saved when an asset is purchased. 40) A stock just paid a dividend of S4.25 and is expected to maintain a constant dividend 40 growth rate of 4.4 percent indefinitely. If the current stock price is $72, what is the required return on the stock? A) 9.86% B) 10.56% c) 10.30% D) 9.79% E) 9.01%