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Andrej [43]
3 years ago
8

"In the past few years, McDonald’s has made a lot of changes to its menu, adding more healthy choices and more higher-priced ite

ms, such as those offered in McCafé (e.g., premium roast coffee, antibiotic-free chicken, and fruit smoothies), and has also enhanced its in-restaurant services (e.g., free, unlimited Wi-Fi; upgraded interiors). Did McDonald’s new priorities—in terms of a broader, healthier menu and an improved in-restaurant experience—require changes to its traditional value chain activities? If so, how? Try to be as specific as possible in comparing the McDonald’s from the recent past (focusing on low-cost burgers) to the McDonald’s of today."
Business
1 answer:
Andreas93 [3]3 years ago
3 0

Answer: This can be explained as follows:-

Explanation: MCdonalds change in menus and adding more healthy choices does brings change in the traditional value chain of the company.

In traditional times company was mainly focused towards the taste of the product and  to make the service as fast and as efficient as possible but now the company is taking care of the health of its customers. Company wants to attract new customer base of health conscious people. In traditional times company's aim was to make quick service to get the tables ready every time a customer walks in but today company wants to make the restaurant a place where people can sit and enjoy their meal for a while and company is taking help of technology in this.

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Consider the following information for Evenflow Power Co., Debt: 5,000 6.5 percent coupon bonds outstanding, $1,000 par value, 1
melamori03 [73]

Answer:

<em>WACC 10.07765%</em>

Explanation:

We solve for the cost of debt by solving for the discount rate which makes the future coupon payment and maturity of the bond equal to 1,020

This is solved using excel or a financial calculator

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 32.50

time 34

<em>rate 0.03153274</em>

32.5 \times \frac{1-(1+0.03153274)^{-34} }{0.0315327401919093} = PV\\

PV $672.0015

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   34.00

<em> rate  0.03153274</em>

\frac{1000}{(1 + 0.03153274)^{34} } = PV  

PV   348.00

PV c $672.0015

PV m  $347.9985

Total $1,020.0000

<u>annual cost of debt:</u>

0.031532 x 2 = 0.063064 = 6.31%

<u>debt outstanding:</u>

5,000 bonds x $ 1,000  x 102/100 = 5,100,000

<u>equity</u>:

105,000 shares x $59 each = 6,195,000

For  the equity we solve using CAMP

Ke= r_f + \beta (r_m-r_f)

risk free = 0.05

market rate = 0.09

premium market = (market rate - risk free) 0.085

beta(non diversifiable risk) = 1.17

Ke= 0.05 + 1.17 (0.085)

<u>Ke 0.14945</u>

Now we solve for the WACC

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

D  5,100,000

E  6,195,000

V  11,295,000

Equity weight 0.5485

Debt Weight 0.4515

Ke 0.14945

Kd 0.0631

t 0.34

WACC = 0.14945(0.5485) + 0.0631(1-0.34)(0.4515)

<em>WACC 10.07765%</em>

7 0
3 years ago
Max has a written agency agreement with Rufus in which Max will receive all of the listings in the subdivision that Rufus purcha
disa [49]

Answer: It's still in place because it doesn't terminate on the death or incompetence of the principal.

Explanation:

Agreement that exists between people are usually standing so long both parties are still alive, in most cases, the agreement may still stand with the death of one party, depending on what was written or agreed upon by both parties. The agreement between Maxwell and Rufus is still in place because it doesn't terminate on the death or incompetence of the principal.

The agreement would even stand even if one of the party ain't alive anymore.

6 0
3 years ago
Suppose that both wheat and corn have an income elasticity of 0.1.
Vesna [10]
<span>The demand for wheat would increase by 0.2 percent. Income elasticity indicates how much demand for something increases or decreases when income goes up or down. It is the calculated as the ratio of the percentage change in quantity demanded to the percentage change in income.</span>
4 0
4 years ago
iRobot Company is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be repla
zimovet [89]

Answer:

Machine A should be purchased because it has a lower equivalent annual cost . Hence, it is cheaper.

Explanation:

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Step 2: Equivalent Annual cost of Machine B

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PV of annual operating  cost of $51,200

= 51,200× (1-(1+0.14)^(-4))/0.14

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Total PV = 315,000+ 149,182.07

=  464,182.07  

Equivalent annual cost =  464,182.07/2.9137

Equivalent annual cost =   159,309.51

Step 3: Compare equivalent Annual cost

Comparing the two equivalent costs, we conclude that Machine A should be purchased because it has a lower equivalent annual cost and therefore it is cheaper.

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Financial experts advise you will need approximately how much of your pre-retirement income in order to maintain your standard o
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<span>Financial experts advise you will need approximately 80 percent of your pre-retirement income in order to maintain your standard of living after you retire.
So, let's say that you earned 3,000 dollars a month while you were still working. That would mean that you would need at least 2,400 dollars when you retire if you want to keep on living practically the same as you did while you still had a job.
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4 years ago
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