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(Solved) Denia Channels - McDonald's Corporation Data Income Statement Years 2015 2014 2013 Total Revenue 25,413,000 27,441,300 28,105,700 Cost of Revenue


Need help calculating WACC and Capital Structure for McDonald's Corporation based on 2015 tax rate of 29.49%.

Please review attached Excel spreadsheet and help calculate WACC using formulas. Also, provide explanation of findings in WACC text box.

Denia Channels - McDonald's Corporation Data
Income Statement
Years 2015 2014 2013 Total Revenue 25,413,000 27,441,300 28,105,700 Cost of Revenue 15,623,800 16,985,600 17,203,000 Gross Profit 9,789,200 10,455,700 10,902,700 Operating Expenses 2,643,700 2,506,500 2,138,400 Operating Income 7,145,500 7,949,200 8,764,300 Net Income 4,529,300 4,757,800 5,585,900 2015 2014 2013 9,643,000 4,185,500 5,050,100 Long-Term Assets 37,938,700 34,227,400 36,626,300 Current Liabilities 2,950,400 2,747,900 3,170,000 30,850,800 21,374,000 20,616,600 7,087,900 12,853,400 16,009,700 2015 2014 2013 2015
327
323
260 2014
152
148
76 2013
159
155
88 2015
39
28
26
18 2014
38
29
27
17 2013
39
31
29
20 Balance Sheet
Years
Current Assets Long-Term/Other Liabilities
Stockholders Equity Financial Ratios
Years
Liquidity Ratios
Current Ratio %
Quick Ratio %
Cash Ratio %
Profitability Ratio
Gross Margin %
Operating Margin %
Pre-Tax Margin %
Profit Margin % Pre-Tax ROE %
After Tax ROE % 92
64 57
37 51
35 Debt to Equity
Debt to Capital 2015
4.7688596058
0.7103823529 2014
1.8766941043
0.6279635227 2013
1.4857617569
0.570745074 Price to Earnings (P/E)
Earnings per Share 2015
0.6390186092
0.639018519 2014
0.3701588685
0.3701588397 2013
0.348907225
0.3489072032 Financial Leverage Market Value Asset Management
2015
37938700.4696982
9.6207828808E-006 Total Asset Turnover
Average Collection Period 2014
2013
34227401.136734 36626301.106097
0.000010664 9.96551628E-006 Market Value
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0 Asset M
40000000
35000000
30000000
Price to Earnings (P/E)
Earnings per Share 25000000
20000000
15000000
10000000
5000000
0 2015 2014 2013 2012 2015 2014 Income Statement
2012
27,567,000 70,000,000
60,000,000
50,000,000 16,750,700 40,000,000 18,816,300 30,000,000
20,000,000 2,211,700 10,000,000
0
2015 8,604,600 Total Revenue 27,567,000 2012
4,922,100
35,386,500
3,403,100 2014 2013
Operating Expenses 2012
Net Income Capital Structure
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0 20,092,900
15,293,600
2015 2014 2013 2012 Liquidity Ratio 2012
350 2012
145
141
69 300
250 Current Ratio %
Quick Ratio %
Cash Ratio % 200
150 2012
39
31
29
20 100
50
0 2015 2014 2013 2012 53
36 Profitability Ratio
2012
1.5363289219
0.5829029041 100
90
80
70
60
50
40
30
20
10
0 2012
1.8025187006
1.8025185828 2012
35386505.600658
1.03146664E-005 2015
2014
2013
2012 %
Gross
Margin %
Operating
Margin %
Pre-Tax
Margin %
Profit
Margin %
Pre-Tax
ROE %
After Tax
ROE Financial Leverage Asset Management
6
5
Total Asset Turnover
Average Collection Period 4
3
2
1
0 2015 2014 2013 2012 2015 2014 2013 2012 2012 come Current Ratio %
Quick Ratio %
Cash Ratio % o 2015
2014
2013
2012 %
After Tax
ROE inancial Leverage 4 Debt to Equity
Debt to Capital 2013 2012 Cash Flow Statement
2015
Net Income
Depreciation
Net Income Adjustments $4,529,300 $
$1,555,700
$286,200 $ 2014
4,757,800 $
$1,644,500 2013
5,585,900
$1,585,100 391,600 $ 141,100 Accounts Receivable ($180,600) $27,000 $56,200 Changes in Inventory $44,900 ($4,900) ($44,400) 0 0 0 $303,600 ($85,700) ($203,200) $6,539,100 $6,730,300 $7,120,700 ($1,813,900) ($2,583,400) ($2,824,700) 0 0 0 393000 278500 150900 ($1,420,000) ($2,304,900) ($2,673,800) ($5,782,000) ($2,963,200) ($1,544,500) $9,755,200 $1,502,900 $535,300 ($58,700) ($12,800) ($11,800) $735,300 ($4,618,300) ($4,043,000) ($246,800) ($527,900) $58,700 $5,607,600 ($720,800) $462,600 Other Operating Activities
Liabilities
Net Cash flow-Operating
Capital Expenditures
Investments
Other Investing Activities
Net Cash Flows-Investing
Sales and Purchasing Stock
Net Borrowings
Other Financing Activities
Net Cash Flows-Financing
Effect of Exchange Rate
Net Cash Flow 2012
$ Net Cash Flow 5,464,800
$6,000,000 $ $1,488,500 $5,000,000 135,900 $4,000,000
$3,000,000 ($29,400)
($27,200)
0 $2,000,000
$1,000,000
$0
2015
($1,000,000) 2014 2013 ($66,500) 2012 $6,966,100 Net Income ($3,049,200)
0 2012 $5,464,80 2013 $5,585,9 ($118,100)
($3,167,300)
($2,286,500) $4,757,800 2014 $1,204,600 $4,529,300 2015 ($13,600)
($3,849,800)
$51,400
$400 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 low 2013 2012 me
$5,464,800 $5,585,900 $4,757,800 $4,529,300
$4,000,000 $5,000,000 $6,000,000 Balance Sheet
Years 2015 2014 2013 2012 9,643,000 4,185,500 5,050,100 4,922,100 Long-Term Assets 37,938,700 34,227,400 36,626,300 35,386,500 Current Liabilities 2,950,400 2,747,900 3,170,000 3,403,100 30,850,800 21,374,000 20,616,600 20,092,900 7,087,900
29.49% 12,853,400 16,009,700 15,293,600 Current Assets Long-Term/Other Liabilities
Stockholders Equity
Tax Rate WACC and Capital Structure caluclated in Excel using Excel formulas
with brief analysis
WACC = (Equity / Total Capital) * Cost of Equity + (Debt / Total Capital) * Cos Capital Structure
40,000,000
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0 2015 2014 2013 2012 WACC and Capital Structure caluclated in Excel using formulas and analys WACC = (Equity / Total Capital) * Cost of Equity + (Debt / Total Capital) * C
- Tax Rate) (Debt / Total Capital) * Cost of Debt * (1 - Tax Rate) el using formulas and analysis of findings ty + (Debt / Total Capital) * Cost of Debt * (1

 


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