Petrobrs of Brazil: Estimating its Weighted Average Cost of Capital. Petrobrs Petrleo Brasileiro S.A. or Petrobras is the national oil company of Brazil. It is publicly traded, but the government of Brazil holds the controlling share. It is the largest company in the Southern Hemisphere by market capitalization and the largest in all of Latin America. As an oil company, the primary product of its production has a price set on global markets-the price of oil-and much of its business is conducted in the global currency of oil, the U.S. dollar. As shown in the popup window, , the various estimates of the cost of capital for Petrobrs of Brazil appear to be high. What are the reasons for the high values of Petrobrs' WACC? What are the reasons for the high values of Petrobrs' WACC? (Select the best choice below.) A. High sovereignty spread. B. High market risk premium. C. High cost of debt. D. E. Lack of international diversification. All above are correct