Q11. McDonald's has the following consolidated 2023 balance sheet and income statement: Balance Sheet: Assets: $50 billion, Equity: $30 billion Income Statement: Revenues: $10 billion, Earnings: $3 billion The firm has a target 50% dividend payout ratio. If McDonald's uses a percentage of sales model for its financial planning and wants to grow its sales by 10%, what is a possible financial plug to achieve this growth rate? A. Issue $1 billion in new equity and $2.35 billion in new debt. B. Issue $5 billion in new debt. C. Reduce its dividend payout ratio in 2024 to 0%. D. Repay \$2 billion in existing debt. Q12. Suppose the discount rate for Asset A is 5\%. This implies which of the following? A. The cash flows from Asset A grow by 5\% each year. B. Asset A will generate a 5% rate of return for its owner. C. The opportunity cost of capital for investing in Asset A is 5\%. D. Asset A is a real asset