How might this dividend policy function


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.

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Finance Basics: How might this dividend policy function
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