Which of the following statements is false?

1) The beta of the debt should be less than the beta of the equity of the same firm.

2) The asset beta of a firm depends on the way in which the firm is financed, i.e., how much debt and equity there is in the capital structure.

3) For positive corporate tax rates, the after-tax cost of debt is less than the before tax cost of debt.

4) The weights in the WACC formula should be market value weights.