Question: Go to finance yahoo and locate current financial in¬tim] for Starbucks Corp. (SBUX) and McDonald's Corp. (MCD), both in terms of each company's current financial statement and stock market prices. With this information:
a. Compute the financial ratios for both firms for the most recent year, and evaluate the relative performance of the two run, in the following areas:
1. Liquidity
2. Asset management efficiency
3. Financing practices (capital structure)
4. Profitability
b. What is each firm's current price-eamings ratio and market¬to-book ratio? What do these ratios tell you about how in¬vestors value these two firms' future prospects?
c. Based on your analysis what is your personal assessment of the two firms' past performance?