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Need help finding a b c and d if possible without using excel thanks! 7. You are estimating McDonalds weighted average cost of capital. McDonalds

Need help finding a b c and d if possible without using excel thanks!

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7. You are estimating McDonalds" weighted average cost of capital. McDonalds finances 17% of capital with debt and 83% with common stock. McDonald's tax rate is 21%. (Notice these are the same numbers in 3, 4 and 6) McDonalds will raize debt capital with the bond from #4: Price 123.6, coupon 6.3% maturity 2049. Underwriters will charge 1% to issue McDonalds' bonds. McDonalds has a beta of 0.82. The risk free rate is 2% and the market risk premium is 6%. McDonald's stock had a dividend paid in time 0 of 53.71 and assume estimated growth is 4% per year. (growth rate is different from #6 above) and the stock price is $167. Underwriters will charge 4% to issue McDonalds common stock. What is the Net Proceeds of the bond issue? a. b. What is the cost of debt financing for McDonalds ? c. What is McDonalds" estimated cost of stock using CAPM? . d. What is the estimated cost of stock (retained earninga) using constant dividend growth model? What is the net proceeds on the stock issue from if McDonalds issued new common stock

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