Using McDonalds annual report and other sources such as a 10k or 10q’s, discuss the dividend policy of the company.
Answer the following questions as part of your response:
- How would you describe McDonald's dividend policy?
- Why do you believe McDonalds 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.