9. The process of estimating how much the company should spend on long term projects is referred to as Capital budgeting. 10. How is the after tax cost of debt calculated? 11. Do we adjust the cost of common or preferred stock for taxes when we are calculating the WACC? 12. Explain what the WACC is. 13. If a firm issues new common stock, new shares of preferred stock, or new bonds, they must pay an investment bank to help them issue the new shares. What would this do to the cost of equity, preferred, and bonds?