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.