WHICH OF THE FOLLOWING STATEMENTS ABOUT THE WEIGHTED AVERAGE COST OF CAPITAL (WACC) CALCULATIONS ARE FALSE?

WHICH OF THE FOLLOWING STATEMENTS ABOUT THE WEIGHTED AVERAGE COST OF CAPITAL (WACC) CALCULATIONS ARE FALSE?

1 - THE BOOK VALUE OF DEBT IS MOST APPROPRIATE TO USE IN DETERMINING THE CAPITAL STRUCTURE WEIGHTS FOR WACC

2 - THE AFTER TAX COSTS OF SECURITIES ARE USED TO CALCULATE WACC

3 - IF A PROJECT IS FINANCED BY ISSUING NEW DEBT, THEN WACC IS EQUAL TO THE AFTER TAX COST OF DEBT

POSSIBLE ANSWERS: A) 1 ONLY B) 2 ONLY C) 3 ONLY D) 1 AND 3 E) NONE OF THE ABOVE