6. Use Yahoo Finance to locate the annual nancial statements of McDonald's Corporation (ticker: MCD) as of December 30, 2019. a. b. 1:. FE\" Estimate the company's market value of equity and approximate the market value of its debt by the book value of its long-term debt. Compute the debt-to-equity ratio of MCD. Calculate the company's marginal tax rate for FY 2019 by dividing its income tax expense by its income before tax. How does it compare to the 2019 US. corporate tax rate of 2 1%. Find the beta of MCD. Then compute its unlevered beta. You obtained the following data on MCD's long-term bond. MCD issued a USD 500 million bond issued in 2020 (Moody's rating is Baal) with a coupon of 3.8% maturing in April 2030 and recently traded at yieldtomaturity of 2.4% (last traded on September 3, 2020). What is the cost of debt of MCD? If the cost of unlevered equity for MCD is 7%, what is the cost of its levered equity? With the above information, compute the current WACC of MCD. Assume that MCD is considering issuing $5 billion of permanent new debt and use the proceeds to repurchase shares. Assume M&M world with corporate tax. (i) Determine the present value of the tax shield of the new debt. (ii) What is the new market value of equity after the new debt issuance? Assume that MCD is considering issuing $50 billion of permanent new debt and use the proceeds to repurchase shares. (i) Determine the present value of the tax shield of the new debt. (ii) What is the new market value of equity after the new debt issuance? (iii) Does the debt increase and the stock repurchase appear to be a good idea? Why