QUESTION 21 Which of the following statements is FALSE? The cost to a firm for capital funding equals the expected return to the providers of those funds A fim's WACC reflects the average risk of the existing projects undertaken by the firm WACC is affected by market conditions including interest rates tax rates, and the market risk premium A firm's cost of capital depends primarily on the source of the funds, not the use QUESTION 22 Unsystematic firm-specific risk is. Diversifiable Undiversifiable Rewarded with higher returns for taking on the risk Only relevant in bond markets