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Sunrise Manufacturing, Inc. 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
Sunrise Manufacturing, Inc. Sunrise Manufacturing, Inc., a U.S. multinational company, has the following debt components in its consolidated capital section, Sunrise's shareholders' equity is $50,000,000 and its finance staff estimates their cost of equity to be 18.0%. Current exchange rates are also listed in the table. Income taxes are 30% around the world after allowing for credits. Calculate Sunrise's weighted average cost of capital. Are any assumptions implicit in your calculation? What is Sunrise's weighted average cost of capital? % (Round to two decimal places.) Assumption Value Tax rate 30% 25-year US$ bonds $10,000,000 5-year US$ bonds $4,000,000 10-year eurobonds (euros) 9,000,000 20-year yen bonds (yen) 800,000,000 Pre-tax cost of 25-year US$ bonds 8.0% Pre-tax cost of 5-year US$ bonds 3.5% Pre-tax cost of 10-year eurobonds 4.0% Pre-tax cost of 20-year yen bonds 2.0% Spot rate ($7) 1.2600 Spot rate ($/) 1.8900 Spot rate ($) 105.50 Click on the icon located on the top-right corner of the data table in
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