McDonald's has a market capitalization of $10 billion and a book value of equity of $5 billion. McDonald's has a beta of 0.75 while the market risk premium is 6% and the risk-free rate is 3% implying that McDonald's cost of equity is Suppose that McDonald's has $4 billion in outstanding debt (book value/par value) and a quoted price of 125 . If the company's bonds are semi-annual coupon bonds with an annual coupon rate of 7%, have ten years to maturity, and their tax rate is 30%, McDonald's after-tax, annual cost of debt is McDonald's market value of equity is while its market value of debt is implying its weight on equity is and its weight on debt is 0.33. Combining the above information, McDonald's weighted average cost of capital (WACC) is