Question: Assume we have estimated the target capital structure. Interest rates are 5% in the UNITED STATE, 8% in Brazil, the corporate tax rates are 30% & 50 percent, respectively. The cost of equity is 12% in the UNITED STATE & 16% in Brazil. The company raises $20,000,000 is in the UNITED STATE equity market, 40,000,000 dollar in the UNITED STATE debt market and (ISO BRL) R$80,000,000 in the Brazilian debt market. The spot F/X rate is R$1.80/$ [1.80 Brazilian Real = $1]. Calculate the weighted average cost of capital.