Chapter $8$ Question $1.$ Is each of the following statements true or false? Explain your answers briefly.

a$.$ Using the same risk$-$adjusted discount rate to discount all future cash flows ignores the fact that the more distant cash flows are often riskier than cash flows occurring sooner.

b$.$ The cost of capital, or WACC, is not the correct discount rate to use for all projects undertaken by a firm.

c$.$ If you can borrow all of the money you need for a project at $6$ percent, the cost of capital for this project is $6$ percent.

d$.$ The best way to estimate the cost of debt capital for a firm is to divide the interest expense on the income statement by the interest$-$bearing debt on the balance sheet.

e$.$ One reliable estimate of a privately held firm$$s equity beta is the average of the equity betas of several publicly held competitors.

f$.$ Nominal cash flows should always be discounted using a nominal discount rate.