Question 20 -- / 5 Adsetts plc is a UK-based MNC with subsidiaries in Mexico. The company would like to estimate its weighted average cost of capital (WACC) in Mexico based on the following information: Adsetts plc has total assets of 150m and debt of 50m, subsidiaries in Mexico hold 48% of the firm's total assets and debt. The shares of the company in the UK have a beta of 1.4 and the return on the UK stock exchange is 9%. In Mexico, Adsetts' shares have a beta of 1.2 and the return on the local stock exchange is estimated to be 10.5%. Bonds issued by Adsetts yield 8% and 10% in the UK and Mexico respectively. Treasury bills in the UK yield 3% and the Mexican government offers 2% yield. The firm has corporate tax rates of 40% and 36% in the UK and Mexico respectively. Calculate the weighted average cost of capital (WACC) of Adsett's Mexican-based subsidiaries