o The weighond average cost of capital for a company is least dependent upon the: AJ cmpany'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 D company's marginal tax rate. 37 37 POD has a project with the following cash flows Year Cash Flows -$269,000 46,100 163,600 128,700 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 35) 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.II 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. A stock just paid a dividend of $4.25 and is expected to maintain a constant dividend growth rate of 4.4 percent indefinitely. If the current stock price is $72, what is the quired return on the stock? A) 9.86% 40) B)10.56% C)10.30% D) 9.79% E) 9.01%