Are these True or False?

1. in the "pure play approach" we employ the use of a weighted average cost of capital that is unique to a particular project, based on companies in similar lines of business.

2. when we are evaluating investments with risks that are substantially different from those of the overall firm, use of the WACC in assessing a proposed project will potentially lead to poor decisions.

3. The cost of equity is the return that equity investors require on their investment in the firm.

4. The cost of capital depends primarily on the source of funds, not on the use of the funds.

5. underwriters are investment firms that act as intermediaries between a company selling securities and the investing public.