The following five statements relate to cost of capital. Mark each statement as $$True$$ or $$False$$ and explain why you marked it the way you did.

$1.$Cost of capital$$ and $$cost of funding$$ are largely interchangeable terms, and are each fully reflected in a company$$s reported net income under GAAP

$2.$ Cost of debt reflects the rate of interest at which a company could currently borrow money, not the rate of interest at which it borrowed money in the past

$3.$ Cost of equity reflects the future return which investors expect to earn from investment in a company$$s equity securities$,$ not the return realized in the past.

$4.$ Cost of equity is best measured as $$earnings yield$,$ the inverse of a company$$s current P$/$E ratio

$5.$ A company$$s $$unlevered$$ cost of capital will generally be higher than its levered cost of equity but lower than its WACC