2. The secondary equity markets of the world serve two major purposes. They provide A) marketability and share valuation. B) liquidity and price support. C) price discovery and arbitrage. D) safety and stability. 3. Cross-border acquisition involves A) building new production facilities in a foreign country. B) buying an existing foreign business. C) leasing existing production facilities to launch a new production activity. D) none of the options 4. Find the weighted average cost of capital(WACC) for a firm that has a debt-to-total market value ratio of 3/5 (2), a tax rate of 34 percent (T), a cost of equity of 12 percent (K) and a pre-tax cost of debt of 10 percent (i). A) 9.6 percent B) 7.968 percent C) 8.76 percent D) none of the options 5. Regarding the mechanics of international portfolio diversification, which statement is true? A) Security returns are much less correlated across countries than within a county. B) Security returns are more correlated across countries than within a county. C) Security returns are about as equally correlated across countries as they are within a county. D) none of the options