QUESTION 25 1. Which of the following statements about the cost of capital finance is/are correct? (1) A company's WACC using book values as weights is likely to be higher than using market (2) The cost of short-run debt finance should be included in a company's WACC calculation (3) The cost of equity will always be higher than the cost of debt for a company A. Statement (1) is correct B. All three statements are correct C. Statements (2) and (3) are correct D. Statements (1) and (2) are correct E. Statement (3) is correct