Capital budgeting involves decisions about whether or not to invest in fixed assets, and it has a major influence on firms' future performance and value. Discounted cash flow analysis is used in capital budgeting, and a key element of this procedure is the discount rate used in the analysis. Capital must be raised to finance fixed assets, and this capital comes from different types of debt, from preferred stock, and from common equity. Each of these capital components has a cost, and these cost rates, along with the target proportions of each, are used to calculate the firm's weighted average cost of capital, WACC. In this cyberproblem, you must obtain information from Finance!Yahoo (http://finance.yahoo.com),Moodys (http://www.moodys.com), and Bonds Online (http://www.bondsonline.com) to estimate AT&T's WACC.