BUS 650 Cap Budgeting & Dividend Policy assignment

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BUS 650 Cap Budgeting & Dividend Policy assignment

As you gave my Final project in McDonalds. These discussion answers should be related to McDonalds.

 

Discussions

1. Factors in Capital Budgeting Decisions

Imagine you are a representative of management in the company you have selected for your Final assignment and you must make a capital budgeting decision. The decision is to implement a new computer network system to decrease the time between customer order and delivery. The cost will be 10% of last year’s profits. You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following:

  • A description of the important factors, in addition to quantitative factors, that were considered when making this capital budgeting decision.
  • An explanation of how these factors are significant to the company.
  • A summary of how you will determine the criteria to rank capital budgeting decisions and whether some criteria are more important than others.
  • A calculation of the proposed return on investment based on criteria you select and justification for that ROI.

Develop a 250 – 300 word explanation supporting your recommendations.

Tip: For help with reading an annual report access this handy guide from Moneychimp (http://www.moneychimp.com/articles/financials/fundamentals.htm)

 

2. Assessing Dividend Policy

Revisit the company you chose for your Final Project. Using the annual report and other sources such as a 10k or 10q’s, discuss the dividend policy of your company.

Answer the following questions as part of your response:

  • How would you describe your chosen company’s dividend policy?
  • Why do you believe this company chose the dividend policy they have in place?
  • Do you agree or disagree that they have selected the best dividend policy for the company?
  • How might this dividend policy function in both perfect and imperfect capital markets?
  • Calculate the dividend rate over the past 5 years. Define why you believe that it has or has not changed over the last 5 years.

Support your position with evidence from the text or external sources.
Your post should be 200-250 words in length.

 

 

 

    • 6 years ago
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