Problem 14.7: Sunrise Manufacturing, Inc. Sunrise Manufacturing, Inc. Post-tax Cost (%) Weighted Component Cost (%) Percent of Total 14.7 Sunrise Manufacturing, Inc. Sunrise Manufactur- ing, Inc., a U.S. multinational company, has the following debt components in its consolidated capital section. Sunrise's finance staff estimates their cost of equity to be 20%. Current exchange rates are also listed in the following table. Income taxes are 30% around the world after allowing for credits. Calculate Sunrise's weighted average cost of capital. Are any assumptions implicit in your calculation? US Dollar Amount $ 10,000,000 4,000,000 Pre-tax Cost (%) 6.000% 4.000% 5,000% 2.000% 20.000% % % % % 100% % % % % % 50,000,000 % WACC Component 25 year US dollar bonds 5 year US dollar euronotes 10 year euro bonds 20 year Yen bonds Shareholders' equity Total Assumption Tax rate 10-year euro bonds (euros) 20-year yen bonds (yen) Spot rate ($/euro) Spot rate (S/pound) Spot rate (yen/S) Value 30.00% 6,000,000 750,000,000 1.2400 1.8600 109.00