Go to Http://finance.yahoo.com/, and locate current financial information for Starbucks Corp (SBUX) and McDonald’s Corp (MCD), including each company’s current financial statements and stock market prices. With this information:

1.     Compute the financial ratios for both firms for the most recent year, and evaluate the relative performance of the two firms in the following areas: (10 points)

·        Liquidity

·        Asset management efficiency

·        Financing practices (Capital structure)

·        Profitability

2.     What is each firm’s current price-earnings ratio and market-to-book ratio? What do these ratios tell you about how investors value these two firm’s future prospects? (5 points)

3.     Based on your analysis, what is your personal assessment of the two firms’ past performance?

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