1. Which of the following statements are correct (Note: Cost of Capital means the same thing as Unlevered Cost of Equity)?

   1. Cost of Capital and WACC are the same thing.
   2. Cost of Capital depends on the tax effect of debt.
   3. WACC depends on the tax effect of debt.
   4. WACC is less than Cost of Capital.

   	A.	Statements 1 and 3 are correct.
   	B.	Statements 1 and 4 are correct.
   	C.	Statements 2 and 3 are correct.
   	D.	Statements 3 and 4 are correct.
   	E.	Statements 2 and 4 are correct.