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Sunrise Manufacturing, Inc. Sunrise Manufacturing, Ic., a U.S. multinational company, has the following debt components in its consolidated capital section, E. Sunrise's shareholders' equity is $40,000,000 and its finance staff estimates their cost of equity to be 20.0%. Current exchange rates are also listed in the table. Income taxes are 40% around the world after allowing for credits. Calculate Sunrise's weighted average cost of capital. Are any assumptions implicit in your calculation? What is Sunrise's weighted average cost of capital? % (Round to two decimal places.) Data table Value Assumption Tax rate 25-year US$ bonds 5-year US$ bonds 40% $10,000,000 $6,000,000 €9,000,000 10-year eurobonds (euros)

Sunrise Manufacturing, Inc. Sunrise Manufacturing, Ic., a U.S. multinational company, has the following debt components in its consolidated capital section, E. Sunrise's shareholders' equity is $40,000,000 and its finance staff estimates their cost of equity to be 20.0%. Current exchange rates are also listed in the table. Income taxes are 40% around the world after allowing for credits. Calculate Sunrise's weighted average cost of capital. Are any assumptions implicit in your calculation? What is Sunrise's weighted average cost of capital? % (Round to two decimal places.) Data table Value Assumption Tax rate 25-year US$ bonds 5-year US$ bonds 40% $10,000,000 $6,000,000 €9,000,000 10-year eurobonds (euros)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Sunrise Manufacturing, Inc. Sunrise Manufacturing, Ic., a U.S. multinational company, has the following debt components in its consolidated capital section, E. Sunrise's shareholders' equity is $40,000,000 and its finance staff estimates their cost of equity to be 20.0%. Current exchange rates are also listed in the table. Income taxes are 40% 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.) - X Data table Assumption Value Tax rate 40% $10,000,000 25-year US$ bonds 5-year US$ bonds 10-year eurobonds (euros) $6,000,000 €9,000,000 20-year yen bonds (yen) Pre-tax cost of 25-year US$ bonds Pre-tax cost of 5-year US$ bonds Pre-tax cost of 10-year eurobonds Pre-tax cost of 20-year yen bonds Spot rate ($/€) Spot rate ($/£) Spot rate (¥/$) ¥800,000,000 7.5% 4.5% 6.0% 4.0% 1.2700 1.9200 107.00 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Print Done
Transcribed Image Text:Sunrise Manufacturing, Inc. Sunrise Manufacturing, Ic., a U.S. multinational company, has the following debt components in its consolidated capital section, E. Sunrise's shareholders' equity is $40,000,000 and its finance staff estimates their cost of equity to be 20.0%. Current exchange rates are also listed in the table. Income taxes are 40% 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.) - X Data table Assumption Value Tax rate 40% $10,000,000 25-year US$ bonds 5-year US$ bonds 10-year eurobonds (euros) $6,000,000 €9,000,000 20-year yen bonds (yen) Pre-tax cost of 25-year US$ bonds Pre-tax cost of 5-year US$ bonds Pre-tax cost of 10-year eurobonds Pre-tax cost of 20-year yen bonds Spot rate ($/€) Spot rate ($/£) Spot rate (¥/$) ¥800,000,000 7.5% 4.5% 6.0% 4.0% 1.2700 1.9200 107.00 Click on the icon located on the top-right corner of the data table in order to copy its contents into a spreadsheet. Print Done
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