True or false

1. The weighted average cost of capital is the average cost of debt, preferred stock andcommon equity that a firm uses to finance its assets.
2. The cost of debt is less than the cost of equity.
3. Market risk premium = Return on large stocks - Return from T-Bills.
4. If tax rates are zero, the before tax and after-tax cost of debt would be the same.
5. If you want to earn high returns, you probably have to take more risk.
6. The risk premium for Apple will be different from the risk premium for Walmart