Sunrise Manufacturing, Inc., a U.S. multinational company, has the following debt components in its consolidated capital section.

Sunrise's shareholders' equity is $50,000,000

and its finance staff estimates their cost of equity to be 20%.

Current exchange rates are also listed in the 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?

What is Sunrise's weighted average cost of capital?

(Round to two decimal places.)

"This calculation assumes there is no expected change in the exchange rate over the life of the debt issue."

Is the above statement true or false?

False.

True.

y, has the following debt components in ts consolidated capital section, EEB Sunrise i Data Table Value Assumption Tax rate 25-year USS bonds 5-year USS bonds 10-year eurobonds (euros) 20-year yen bonds (yen) Before-tax cost of 25-year USS bonds Before-tax cost of 5-year US$ bonds Before-tax cost of 10-year eurobonds Before-tax cost of 20-year yen bonds Spot rate (S/e) Spot rate (S/E) Spot rate (/S) 30% $10,000,000 $4,000,000 66,000,000 X750,000,000 60% 4.0% 50% 2.0% 1.2400 1.8600 109.00 Print Done 99+