Mcdonalds has a bonds average yield of 8 percent and a stock beta of 1.1.Currently, US treasury bill rates is 2 percent and world market index is 9 percent. Mcdonalds has total assets of $100 million and debt of $60 million, and falls within the 30 percent tax bracket. 

What is its cost of equity? 

What is its weighted average cost of capital? 

Answer rating: 100% (QA)

To calculate the cost of equity using the Capital Asset Pricing Model C... View the full answer