Choose all that are appropriate

1. A firm whose ROE is 5% and cost of capital is 10% is creating value.
2. Positive NPV projects will have rates of return greater than the cost of capital.
3. If a division of a firm has lower risks than other divisions, the firm has a risk of underinvesting in that division
4. A company with sustainable returns to capital of 15% and a cost of capital of 12% will maximize its value by offering dividends at 3% of par value.
5. Management should prioritize payment of dividends because that would create value for shareholders.

I think 2,3 are right, and 1,5 are wrong and 4....I don't know

explain all, please. Thank you