1) For a firm selling stock for the first time, SML model is more appropriate than the dividend growth model. TRUE OR FALSE

2) If the risk-free rate = 2%, beta = 2, and the market risk premiuim is 10%. The cost of equity > 20%. TRUE OR FALSE

3) Both bank loans and bond sales are examples of debt capital. TRUE OR FALSE

4) Yield-to-maturity and Rd are not synonymous. TRUE OR FALSE