Which of the Following Statements Is False

Which of the following statements is false?

A) From a theoretical standpoint,the capital weights used to calculate the WACC should be based on the market values of the different securities.However,if a firm's book value weights are close to its market value weights,book value weights can be used as proxies.
B) Generally,only long-term debt is included in the calculation of the WACC,because the WACC is used for capital budgeting purposes,which includes long-term assets,and those assets are financed with long-term capital.
C) The first break point a firm encounters in capital budgeting is for retained earnings,unless a firm has zero or negative net income.
D) The weighted average cost of capital will change whenever a break point occurs.
E) Answers a and b are both false.