The following five statements purport to explain why capital structure may impact a company$$s value in the real world, notwithstanding academic theory suggesting that $($with certain assumptions$)$ changes in capital structure should theoretically have little or no impact on either cost of capital or value $($see Modigliani & Miller$).$ Mark each statement as $$True$$ or $$False$$ Please also explain why you chose the answer for each statement.

$1.$ In the US$,$ Interest expense is tax deductible but dividend payments are not

$2.$ In the US$,$ Interest expense is tax deductible but dividend payments are not

$3.$ Capital markets are volatile and securities do not always trade at prices equal to intrinsic value

$4.$ Too much debt may entail distress costs, for example transaction costs incurred in a financial restructuring or bankruptcy

$5.$ Extreme capital structures may impact a company$$s operating strategy, resulting in different operating cash flows under different capital market or operating scenarios