Given the table below for McDonald's Financial data, please provide calculations for the market ratios.

QUESTIONS:

Book value per share: Total stockholders equity/Number of shares outstanding

Earnings-based growth models: P = kE/ (r g), where E = earnings, k = dividend payout rate, r = discount rate, and g = earnings growth rate

Market-to-book: (Stock price Number of shares outstanding)/Total stockholders equity

Price-earnings: (PE) ratio Stock price / EPS

Price-earnings growth: (PEG) ratio PE/Earnings growth rate

Sales-to-market value: Sales/(Stock price Number of shares outstanding)

Dividend yield: Dividends per share/Stock price

Total return to shareholders: Stock price appreciation + Dividends

Limitations Market measures tend to be more volatile than accounting measures but also provide a good perspective on the overall health of a company when used holistically with the other measures of financial performance.

1)Market volatilityoise is the biggest challenge with these measures.

2)Understanding what is a result of a firm strategy/decision vs. the broader market is challenging.

EXHIBIT 1 McDonald's (Normalized) Stock Performance vis--vis S\&P 500 Index under Steve Easterbrook (CEO, March 1, 2015-November 1, 2019). McDonald's Corp Price \% Change Dow Jones Industrial Average Level \% Change EXHIBIT 2 McDonald's Financial Data (\$ millions, except EPS data), 2014-2018 EXHIBIT 1 McDonald's (Normalized) Stock Performance vis--vis S\&P 500 Index under Steve Easterbrook (CEO, March 1, 2015-November 1, 2019). McDonald's Corp Price \% Change Dow Jones Industrial Average Level \% Change EXHIBIT 2 McDonald's Financial Data (\$ millions, except EPS data), 2014-2018