QI: The following table shows an abbreviated income statement and balance sheet for Me Jonald Corporation for 2012. INCOME STATEMENT OF MCDONALD'S CORP., 2012 (Figures in S millions) Net sales 27.567 Costs 17.569 Depreciation 1.402 Earnings before interest and taxes (EBIT) 8.596 Interest expense 517 Pretax income 8.079 Taxes 2.614 Net income 5.465 2012 2011 340 3.405 117 Assets Current assets ketable securities Hoe inventores Other current assets Total current assets Fixed assets Property, plant and equipment Intangible assets (goodwill) Other long-term assets Total assets BALANCE SHEET OF MCDONALD'S CORP., 2012 (Figures in S millions) 2012 2011 Liabilities and Shareholders' Equity Current liabilities 2.336 2.336 Debt due to repaymen 1.375 1.335 Accounts payable 122 Total current liabilities 1.089 616 4.922 4.403 Long-term debt 24,677 22,835 Other long-term liabilities 2,804 2,653 Total liabilities 2.983 3,099 Total shareholders equity 35.387 32,990 Total liabilities and shareholders' equity 13,633 3.057 20.093 15.294 35.387 12 134 2.357 18.000 14 390 32.990 In 2012 McDonald's had capital expenditures of $3,049. (Net Investment in operating capital). a. Calculate McDonald's free cash flow in 2012. b. If McDonald's was financed entirely by equity, how much more tax would the company have paid? (Assume a tax rate of 35 %.) c. What would the company's free cash flow have been if it was all-equity financed? d. Calculate company's Economic Value Added (EVA) for 2012 if cost of capital is 12%