1. Window Rock Manufacturing, Inc. Window Rock Manufacturing, Inc, a US. multinational company, has the following debt components in its consoli- dated capital section:

Income taxes are 30% around the world after allow- ing for credits. Calculate Window Rock's weighted average cost of capital. Are any assumptions implicit in your calculation?

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U.S. dollar-denominated 25-year bonds at 6.00% $10,000,000 US dollar-denominated 5-year Euronotes at 4.00% $4,000,000 Euro-denominated 10-year bonds at 5.00% 6,000,000 Yen-denominated 20-year bonds at 2% 750,000,000 Common stock $35,000,000 Retained earnings $15,000,000 Window Rock's finance staff estimates their cost of equity to be 20%. Current exchange rates are: European euros: $1.24/ British pounds sterling S86/E Japanese yen: 109/$