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table [ [ Net sales, 2 7 , 5 6 8 ] , [ Costs , 1 7 , 5 7 0 ] ,

\table[[Net sales,27,568],[Costs,17,570],[Depreciation,1,403],[\table[[Earnings before interest and taxes],[(EBIT)]],8,595],[Interest expense,518],[Pretax income,8,077],[Taxes,2,616],[Net income,5,461],[,]]
\table[[,\table[[BALANCE SHEET OF MCDONALD'S CORP. 2012],[(Figures in $ millions)]],,],[,,,Liabilities and Shareholders',,],[Assets,2012,2011,equity,2012,2011],[Current assets,,,Current liabilities,,],[\table[[Cash and marketable],[securities]],2,337,2,337,Debt due for repayment,,],[Receivables,1,376,1,336,Accounts payable,3.404,3,144],[Inventories,123,118,Total current liabilities,3,404,3,514],[Other current assets,1,090,617,,,],[Total current assets,4,926,4,408,,,],[Fixed assets,,,Long-term debt,13,634,12,135],[\table[[Property, plant, and],[equipment]],24,678,22,836,Other long-term liabilities,3,058,2,958],[\table[[Intangible assets],[(goodwill)]],2,805,2,654,Total liabilities,20,096,18,607],[Other long-term assets,2,984,3,100,Total shareholders' equity,15.297,14,391],[Total assets,35,393,32,998,\table[[Total liabilities and shareholders'],[equity]],35.393,32,998]]
In 2012 MeDonald's had capital expenditures of $3,050.
a. Calculate McDonald's free cash flow in 2012.(Enter your answer in millions.)
Free cash flow
$
million
If McDonald's was financed entirely by equity, how much more tax would the company
b. have paid? (Assume a tax rate of 35% on the revised pretax income.)(Do not round intemediate calculations. Enter your answer in milions rounded to the nearest whole number.]
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