Using the principles learned throughout the class critically answer the following question assuming the roles of CEO & CFO: What is your recommendation to the Board of Directors in order to maximize shareholder value? Grading will be based on how well students critically apply concepts in class to evaluate the company and at the minimum include the following:
Company in this project: McDonald’s
(i) company overview, key managers and managerial decisions, financial history and background;
(ii) complete financial analysis using a variety of methods (i.e. ratios, DCF, WACC v. ROIC, equity/debt, etc.);
(iii) compare against peer groups/competitors;
(iv) final recommendation(s). The final recommendation(s) may include a valuation of the company, buy/sell decisions, acquisition/merger, take-over, alternative options, etc. Creativity is also encouraged.
What Financial Analysis Methods Should You/Your Group Be Considering?
âœ“ Financial Ratios
âœ“ Financial Review from Statements
âœ“ Peer Groups / Industry
âœ“ Discounted Cash Flow / Financial Projections
âœ“ Equity Markets / Stock Markets
âœ“ Companyâ€™s Capital Structure