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McDonald's Corporation, a leading fast-food chain, presents the following financial figures for the fiscal year ending December 31, 20XX: Total revenue: $25 billion Cost of

  1. McDonald's Corporation, a leading fast-food chain, presents the following financial figures for the fiscal year ending December 31, 20XX:
    • Total revenue: $25 billion
    • Cost of goods sold: $10 billion
    • Selling, general, and administrative expenses: $8 billion
    • Depreciation and amortization expense: $2 billion
    • Operating income: $5 billion
    • Interest expense: $1 billion
    • Income tax expense: $1.5 billion

Calculate the following financial ratios for McDonald's Corporation:

a) Earnings Before Interest and Taxes (EBIT) margin b) Net profit margin c) Return on assets (ROA) d) Return on equity (ROE)

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