Mcdonald Security Analysis

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McDonald’s Corporation (Ticker Symbol: MCD) Security Analysis John Smith Some University Finance 560 Professor John Handcock April 17, 2011 Table of Contents Abstract…………………..………………………………………………………………………. 3 Corporate Background and Life Cycle Analysis…………………………………………..…….. 3 Corporate Background…………………………………………………………………… 3 Life Cycle Analysis………………………………………………………………………. 5 Demographic Trends…………………………………………….……………………….. 6 Industry Forces and Competition……………………………………….……………..…………. 7 Industry Forces…………………………………………………………………………… 7 Competition………………………………………………………….…………………… 7 Analysis of Return on Equity, ROE……………………………………………………………… 7 ROE as a Basis for Growth………………………………………………………………. 8 Projected Future Growth Rate of Earnings………………………………………………. 9 Analysis of Required Rate of Return…………………………………………………………… 10 Intrinsic Value…………………………………………………………………………….…….. 10 Summary Discussion…………………………………………………………………………… 11 Recommendation………………………………………………………………….……. 11 Abstract This analysis of McDonald’s Corporation, McDonald’s, is to show the research, logic, and process used in making a recommendation on McDonald’s stock. This analysis will include a corporate background and life cycle analysis along with demographic trends. Industry forces and competition will be reviewed also. An analysis of the Return on Equity and how it can be used as a determinate as a basis for growth. Projected future growth rate of earnings, required rate of return, and Intrinsic Value will be analyzed. The summation and overall results of the review of the analysis will be used to draw a conclusion for this recommendations opinion. This analysis and interpretation is solely meant to be interesting and informative. Any investor looking to use this as a decision making tool for their own or others investment should do their own research and due diligent outside
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