Some people would argue that companies with higher risk assets should use less debt. based on WHAT YOU OBSERVED FROM THE DATA ABOVE(JUST THE DATA OF"SHOP"), Is this statement basically right? are there any factors that can affect this statement, if it's not right, provide a possible explanation as to why not. (Answer in space below - do not expand the space, be concise in your answer that uses course/textbook knowledge.)

IF POSSIBLE PLEASE ANSWER THE 4. ON THE PICTURE BASED ON THE DATA SHOWN TOO!just for SHOPThank you so much

1. Beta Using 2 years of weekly data Company Raw Beta Adjusted Beta AC L SHOP 1.121 1.081 2. WACC Reported Given Bloomberg Defaults WACC Equity Weight Equity Beta E[Rm) used Cost of Equity Debt Weight Debt Cost Preferred Wei Preferred Cost Company AC L SHOP 10.80% 99.30% 1.08 10.07% 10.82% 0.70% 1.00% 0 Redone results with Country Premium = 5.5% and use of Raw Beta instead of Adjusted Beta WACC Equity Weight Equity Beta Cost of Equity Debt Weight Debt Cost Preferred Weight Preferred Cost Company AC L SHOP 6.92% 99.30% 1.21 6.90% 0.70% 1.00% 0 0 Reported Given Bloomberg Defaults WACC no tax Cost of Debt %ST Debt Effective Tax Rate Cost of LT Debt Reported prior to zeroing Cost of ST Del%LT Debt 3. WACC with no tax Company AC L SHOP 10.80% 1.04% 1% 0 99% 0.75% 10.80% Asset Risk Rank (1, 2 or 3) What is your ranking based on (pick one set of numbers from the above analysis and highlight them in yellow)? 4. Ranking of asset risk Company AC L SHOP 1. Beta Using 2 years of weekly data Company Raw Beta Adjusted Beta AC L SHOP 1.121 1.081 2. WACC Reported Given Bloomberg Defaults WACC Equity Weight Equity Beta E[Rm) used Cost of Equity Debt Weight Debt Cost Preferred Wei Preferred Cost Company AC L SHOP 10.80% 99.30% 1.08 10.07% 10.82% 0.70% 1.00% 0 Redone results with Country Premium = 5.5% and use of Raw Beta instead of Adjusted Beta WACC Equity Weight Equity Beta Cost of Equity Debt Weight Debt Cost Preferred Weight Preferred Cost Company AC L SHOP 6.92% 99.30% 1.21 6.90% 0.70% 1.00% 0 0 Reported Given Bloomberg Defaults WACC no tax Cost of Debt %ST Debt Effective Tax Rate Cost of LT Debt Reported prior to zeroing Cost of ST Del%LT Debt 3. WACC with no tax Company AC L SHOP 10.80% 1.04% 1% 0 99% 0.75% 10.80% Asset Risk Rank (1, 2 or 3) What is your ranking based on (pick one set of numbers from the above analysis and highlight them in yellow)? 4. Ranking of asset risk Company AC L SHOP