Lets say mcdonalds needs to raise 1 billion to expand into


Let's say McDonald's needs to raise $1 billion to expand into Africa. Determine whether Mcdonald's should have used all debt, all stock, or a 50-50 combination of debt and stock to finance this market-development strategy. Assume a 38 percent tax rate, 5 percent interest rate, Mcdonald's stock price of $50 per share, and an annual dividend of $0.30 per share of common stock. The EBIT range for 2010 is between $6.332 billion and $9 billion. A total of 1 billion shares of common stock are outstanding. Develop and EPS/EBIT chart to reflect your analysis.

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Operation Management: Lets say mcdonalds needs to raise 1 billion to expand into
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