Which of the following statement is incorrect?

Group of answer choices

James lent money to The Corner Store by purchasing bonds issued by the store, and therefore the rate of return that he and the other lenders require is referred to as the cost of debt.

Firms raise capital by borrowing it by issuing bonds to investors or promissory notes to the federal government, or by issuing preferred or common stock to the state and municipal governments.

Since interest payments are tax deductible, the true cost of the debt is the after tax cost.

The mixture of capital used to finance a firms assets is called the capital structure of the firm.

Most of the answers are correct.