1. You are evaluating the common stock of McDonalds Corp

The dividends and times 0 is $4.71 Andy stock price is $214.31

You estimate a constant growth rate of 2.70% And a required rate of 7.00%

2.70% Forever?

A) what is the expected rate of return of McDonalds common stock if it grows at a constant rate of ____________

B) What is the value of McDonalds common stock using the constant growth model_______________

2. you are estimating the cost of capital at McDonalds the first step is estimating the cost of common stock.

If McDonald issues new common stock, and underwire will charge 1.70%

McDonalds stock has a beta of 0.65 The risk rate is 1.50%

And the expected market risk premium is 5.00%

A) what is the estimated net proceeds at McDonalds common stock?____________

B) what is the cost of newly issued common stock at McDonalds using the constant growth model?________

C) what is McDonalds cost of common stock using retained earnings in the constant growth model?_________

D) what is McDonalds cost of common stock using the CAPM model? ___________

E) what is the best estimate Of the cost of common stock McDonalds if McDonalds has plenty of funds of retained earnings and you do not estimate constant growth?______________

Please use excel and elaborate which formula you used and how you filled in the formula. Im still figuring out excel so its a little confusing. Please help a sis out. Thank you in advance!