1) The cost of capital is described as the rate of return required by the market suppliers of capital in order to attract their funds to the firm.

True or False. Elaborate on your answer.

2) The cost of capital is the rate of return a firm must earn on investments in order to increase the firm's value.

True or False. Elaborate on your answer.

3) The purchase of additional physical facilities, such as additional property or a new factory is an example of capital expenditure.

True or False. Elaborate on your answer.

4) Capital expenditure proposals are reviewed to assess their appropriateness in light of a firm's overall objectives and plans and to evaluate its economic validity.

True or False. Elaborate on your answer.