4) When discounting dividends you should use: A) the weighted average cost of capital. B) the after tax weighted average cost of capital. C) the equity cost of capital. D) the before tax cost of debt. 5) Which of the following statements is FALSE? A) The most common valuation multiple is the price-earnings (P/E) ratio. B) You should be willing to pay proportionally more for a stock with lower current earnings. C) A firm's P/E ratio is equal to the share price divided by its earnings per share. D) The intuition behind the use of the P/E ratio is that when you buy a stock, you are in sense buying the rights to the firm's future earnings and differences in the scale of the firms' earnings are likely to persist