QUESTION 36 If a firm's marginal tax rate is increased, this would, other things held constant, lower the cost of debt used to calculate its WACC. True O False QUESTION 37 Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting? a. Long-term debt b. Accounts payable OC Retained earnings O d. Common stock. Oe. Preferred stock