Financial Analysis of the McDonalds Company Stock ticker symbol, exchange where traded _________ Address of company headquarters _________ Company phone number __________ Your name, etc. PART 1, COMPANY OVERVIEW: a. Brief description of the company (one paragraph, briefly summarizing the company’s business) b. Company history (origin, major developments, etc.) c. Organization (describe how the company is structured) d. Main products and services (describe what the company
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Historical performance; Time value of money: compounding, discounting, present values and future values, annuities and perpetuities, etc.; Interest rates and bond valuation; Dividends and stock valuation and dividend policy; Capital budgeting: NPV, IRR, payback period, profitability index, etc.; Risk, return and security market line: beta estimation, CAPM; Cost of capital, financial leverage, capital structure, etc; Cash and liquidity, credit and inventory management; International corporate finance; Risk
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1995 Question 1: Warren Buffett's (Buffett) track record as a value investor and sheer financial strength has earned him an incredibly valuable reputation within the financial industry. Being an anomaly in the investment world; when he talks – the market follows. This is noticeably seen in the increase in equity of $718 million. ------------------------------------------------- Question 2: GEICO Outstanding shares April 30, 1995: 67.89 million, of which 34.22 million owned and 33.67 million
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CHAPTER 1 INTRODUCTION TO INTERNATIONAL ACCOUNTING Chapter Outline I. International accounting is an extremely broad topic. A. At a minimum it focuses on the accounting issues unique to multinational corporations, especially with respect to foreign operations. B. At the other extreme it encompasses the study of the various functional areas of accounting in all countries of the world, as well as the activities of a number of supranational organizations. C. This book provides an
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Chapter 6: 9) BOND 1 YEAR 1: In excel =PV(10%,10,80,1000) =$877.11 Rate = 10% nper= 10 PMT = 80 (1000*8% = $80) FV = $1000 BOND 1 YEAR 2: =PV(10%,9,80,1000)=$884.82 ROR = 80 + [884.83 – 877.11]/877.11 = 10% BOND 2 YEAR 1: =PV(10%,10,120,1000) = $1,122.89 BOND 2 YEAR 2: =PV(10%,9,120,1000) = $1,115.18 ROR = 120 + [1115.18 – 1122.89]/1122.89 = 10% Answer: No it does not. They are the same. 14) Price | Maturity (Years) | Yield to Maturity | $300 | 30 | 4
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prepared to discuss the cases in detail. By the end of the semester, students should be able to: (1) describe essential characteristics of the finance profession and institutions, (2) be conversant in basic financial jargon, (3) value paper assets (stocks and bonds) and tangible assets (capital budgeting) using the tools of time value of money, including NPV and IRR, (4) explain the various sources of financing, their associated costs, and their advantages and disadvantages, (5) calculate and use
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face of much adversity. Their 2003 gross profit margin of 36.02% (Appendix A) was an outstanding example of how they were able to hold high profit margins in such a competitive industry. However, although they have had a strong grip on the American market, 50.3% in 2003 (Appendix A), they remain a luxury item in most foreign countries which has left them much room for expansion globally. Many of Harley Davidson’s internal process worked to their advantage. They always excelled at continuously improving
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in each project would result in the misallocation of resources. By adjusting the firm’s overall hurdle rate, the company can review the divisional risk before taking capital allocation and investment decision. Without risk adjustment, the firm’s stock value would be affected for taking in and allocating large proportion of resource in project with high risk which may result in loss. Besides, when the firm rejects acceptable project with low risk or allocate small amount of capital in the project
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four months. If at the end of four months the stock price proves to be less than $25, you can exercise the options and sell the shares for $25 each. Problem 1.9. A stock when it is first issued provides funds for a company. Is the same true of an exchange-traded stock option? Discuss. An exchange-traded stock option provides no funds for the company. It is a security sold by one investor to another. The company is not involved. By contrast, a stock when it is first issued is sold by the company
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P6-38 (30 minutes) a. Best Buy (a retailer) reports a much higher receivables turnover rate than does the manufacturer, Caterpillar. The likely reason for this is that retail sales are usually via cash, check, or credit cards (which are like cash for the retailers). Recall that the turnover ratio includes credit sales, but, because most firms do not report credit sales, we are forced to use total sales when we calculate the turnover ratio. Using total sales instead of credit sales overstates
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