Estimating the cost of common equity using the discounted cash flow approach may be 26 difficult to evaluate because a. dividends paid over the prior year are extremely difficult to estimate. b the proper growth rate is difficult to establish. c. the determine. de curent price of the common equity is always changing making it difficult to The target capital structure of a firm is the capital structure that a. maximizes the tax shield created by debt. b. minimizes the default risk of long-term debt. c. maximizes the price of the firm's stock. d. number of shares of common held by shareholders 27. 28 aph of firm's acceptable capital projects ranked in the order of the projects' internal a. marginal cost of capital schedule b. investment opportunity schedule c. modified internal rate of return schedule d. net present value profile 29. Floatation costs include all of the following except: a. Brokerage fees. b. Cost of goods sold. c. Printing and distribution expenses. d. Share price reduction. 30. An increase in the corporate tax rate would the weighted average cost of capital for an average debt-issuing firm, other things held constant. a. Reduce b. have no impact on c. Increase ESSAY A. Fill in the followine matri