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QUESTION 3 McDonalds has a bonds average yield of 10 percent and a stock beta of 1.3. 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 $40 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