Which of the following statements is FALSE?

$1.$ In the flow$-$to$-$equity valuation method, the project's free cash flows are discounted using the equity cost of capital.

$2.$ When a firm has permanent debt, the cost of debt is not required to calculate the present value of the interest tax shield.

$3.$ Eurodollar bonds are issued by foreign $($non$-$U$.$S$.)$ companies in the U$.$S$.$ bond market.

$4.$ Private companies usually issue preferred stock when they sell equity for the first time to outside investors.

A$)$ Statement $3.$

B$)$ Statement $2$ and $3.$

C$)$ Statements $1$ and $3.$

D$)$ Statements $2$ and $4$