Respond to the attached discussions
Background information regarding the discussion below:
Determine the Cash Value of McDonald’s
graded
Textbook Learning Exercise 8C
Overview
Exercise 8C.
Purpose:
It is simply good business to continually know the cash value (corporate valuation) of your company. This exercise gives you practice in determining the total worth of a company using several methods. To perform this analysis, use McDonald’s financial statements as given in the Cohesion Case.
Instructions:
Step 1: Calculate the financial worth of McDonald’s based on four approaches:
(1) the net worth method,
(2) the net income method,
(3) the price-earnings ration method, and
(4) the outstanding shares method.
Step 2: Get an average of the four methods. In a dollar amount, how much is McDonald’s worth?
Step 3: Compare your analyses and conclusions with the class in the Discussion.
What to Post?
Post your initial narrative to this Discussion Board no later than Thursday 11:59 PM EST/EDT.
Before you post, review the Discussion (MBA) Rubric.
Peer Response
Review your classmates’ answers and find two with which your companies’ valuations differ.
Compare your analyses and conclusions with those of other students.