Question: Please help me solve these three problems and write the details of the answers. Thanks. Use the following information. Aucune de Ces Rponses Corporation (ACRC)


Please help me solve these three problems and write the details of the answers. Thanks.
Use the following information. Aucune de Ces Rponses Corporation (ACRC) is a French company listed on the Paris Stock Exchange. ABC's market returns have a standard deviation of 14%, while the French market as a whole has an average return of 12% with a standard deviation of 7%. The correlation between ABC and the Paris Stock Market is .50. Suppose that the risk-free rate was 5%, 34) What is ACRC's beta? a. .49 b. 0.9 c. 7.0 d. 12 e. None of the above 35) What is ACRC's equity cost of capital? a. 49 b. 0.9 c. 7.0 d. 12 e. None of the above 36) Suppose that ACRC cross-lists on the U.S. market and this causes their equity cost of capital to be 7%. If the company has a debt to equity ratio of 3, a tax rate of 25% and an interest rate of 5% on its debt, what is ACRC's WACC? a. 5.38% b, .0456% C. 4.56% d. 6.19% e. None of the above
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