McDonalds has a bonds average yield of 8 percent and a stock beta of 1.1. Currently, US treasury bill rates is 2 percent

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

McDonalds has a bonds average yield of 8 percent and a stock beta of 1.1. Currently, US treasury bill rates is 2 percent

Post by answerhappygod »

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 30
percent tax bracket.
What is its cost of equity?
What is its weighted average cost of capital?
Round your answer to 4 decimal points. Do not put your answer in
percentage.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”