Activity Sheet One: History of Mc Donald`s Corp

STUDENT
WORKBOOK
Please Note:
1. Prices included in the activities are not representative of actual market data and are for
instructional purposes only. Visit online financial reporting sites for real, up-to-the-minute
data.
2. Discrepancies may occur between student responses and the answer keys as a result of how
far calculations were taken past the decimal point. In most instances, numbers were
rounded from the thousandth or ten thousandth place.
Copyright © 2009 SIFMA Foundation for Investor Education.
Table of Contents
TABLE OF CONTENTS ............................................................................................................................................ I
THE CHOCOLATE COMPANY..............................................................................................................................3
THE CHOCOLATE COMPANY GUIDING QUESTIONS ....................................................................................................7
PRODUCTS I KNOW ................................................................................................................................................8
SUCH A SEARCH ......................................................................................................................................................9
BRAND & COMPANY LIST .......................................................................................................................................10
COMPANIES .............................................................................................................................................................11
BRANDS ...................................................................................................................................................................13
COMPANIES, BRANDS & PRODUCTS ...............................................................................................................15
POSSIBLE PURCHASES ........................................................................................................................................17
STOCK TICKER SYMBOL ....................................................................................................................................19
FIND THE TICKER ....................................................................................................................................................20
TICKER SYMBOLS.................................................................................................................................................21
YOUR PORTFOLIO ................................................................................................................................................23
ENTER THE SMG ....................................................................................................................................................23
THE MAIN MENU.....................................................................................................................................................24
ENTER A STOCK TRADE ...........................................................................................................................................26
PURCHASE A STOCK ................................................................................................................................................28
U
WEB QUOTES ..........................................................................................................................................................29
SCREEN TEST...........................................................................................................................................................31
52-WEEK HIGH AND LOW ...................................................................................................................................33
PURCHASE ANOTHER STOCK ...................................................................................................................................34
ACCOUNT HOLDINGS ..........................................................................................................................................35
EVERYDAY RISK....................................................................................................................................................37
RISK AND RETURN................................................................................................................................................39
RISK AND RETURN WORKSHEET .............................................................................................................................40
FINDING YOUR RISK TOLERANCE ..................................................................................................................41
THINKING ABOUT RISK TOLERANCE ............................................................................................................43
THE $5,000 QUESTION...........................................................................................................................................45
A TALE OF TWO SAVERS ....................................................................................................................................49
TRACKING YOUR INTEREST .............................................................................................................................51
FINDING THE DIVIDEND .....................................................................................................................................53
HOW TO FIND STOCKS THAT PAY HIGH DIVIDENDS...............................................................................55
PURCHASE ANOTHER STOCK ...........................................................................................................................57
Table of Contents
i
FUND SEEKER.........................................................................................................................................................59
WORKSHEET ............................................................................................................................................................61
WHAT KIND OF MUTUAL FUND AM I?............................................................................................................62
PURCHASE ANOTHER STOCK ...........................................................................................................................64
BUILDING A STRONG PORTFOLIO ..................................................................................................................66
HOW DIVERSIFIED ARE THESE PORTFOLIOS? ...........................................................................................67
YOUR SELECTION ....................................................................................................................................................68
IS IT DIVERSIFIED?...............................................................................................................................................69
A TALE OF TWO MARTS......................................................................................................................................70
PROFIT AND LOSS .................................................................................................................................................73
YOUR PORTFOLIO PROFIT AND LOSS............................................................................................................74
YOUR PROFIT AND LOSS..........................................................................................................................................75
HEADLINES IN THE NEWS ..................................................................................................................................77
BUY, SELL, HOLD SCENARIOS ..........................................................................................................................78
DOES THE “NEWS” AFFECT YOUR SMG PORTFOLIO?.............................................................................80
YOUR WEEKLY RANKINGS................................................................................................................................81
ACCOUNT HOLDINGS: WHAT DID YOU BUY AND SELL? ........................................................................82
TRANSACTION HISTORY: ANALYZE YOUR PORTFOLIO ........................................................................84
IS MY PORTFOLIO DIVERSIFIED?....................................................................................................................85
YOUR FINAL RANKINGS .....................................................................................................................................86
GRAPHING YOUR PERFORMANCE ............................................................................................................................86
FINAL RANKINGS.....................................................................................................................................................88
COMPANY PROFILES ...........................................................................................................................................89
COMPANY ONE ........................................................................................................................................................89
COMPANY TWO .......................................................................................................................................................90
COMPANY THREE ....................................................................................................................................................91
FINAL REPORT SUMMARY.................................................................................................................................92
FINAL REPORT COVER........................................................................................................................................93
Table of Contents
ii
Such a Search
You will be looking for brands and the companies that own them, the chart
below will help you think about your search.
Task Three – Before You Invest-What Is a Company?
9
Brand & Company List
The list below presents popular brand names and companies. Mark a B
next to each Brand and a C next to each Company. Mark an X next to a
name that is both. The lists that follow will help you.
B,C,X
Brand or
Company
Apple
Bank of America
Ben & Jerry’s
Blockbuster
Burger King
Carter’s
Cheerios
Cheez-it
Crest
Disney
Domino’s Pizza
Ford
Fritos
Gap
General Mills
Brand or
Company
B,C,X
Good and Plenty
Hasbro
Jif
Hershey Foods
J.M. Smucker Co.
Kellogg Co.
Kraft Foods
McDonald’s
Merrill Lynch
Minute Maid
PepsiCo
Procter & Gamble
Pizza Hut
Taco Bell
Tropicana
Task Three – Before You Invest-What Is a Company?
10
Companies
Activision (ATVI) Interactive
software games
Apple (AAPL) Prominent hardware
and software company
Bank of America (BAC) One of the
largest commercial banks in the U.S.
Berkshire Hathaway (BRK.A)
Holding company for various
businesses
Bertelsmann AG Private
international media corporation
Blockbuster (BBI) World’s largest
video-rental chain
Borders Group (BGP) No. 2
bookstore after Barnes & Noble
Burger King Private global chain of
hamburger fast-food restaurants
Cadbury Schweppes (CSG)
Beverages, candy
Campbell Soup (CPB) Diversified
food company
Carter’s (CRI) Manufacturer of
children’s apparel
CSK Auto Co. (CAO) Retailers of
auto parts and accessories
Daimler AG (DAI) Automobile
manufacturing
Domino’s Pizza (DPZ) Pizza
delivery and carryout restaurant
Dun & Bradstreet (DNB) Supplier
of business information and research
Electronic Arts (ERTS) Interactive
software games
Ford (F) Automobile manufacturing
Fox Entertainment Group (FOX)
Entertainment conglomerate
(consisting of many companies)
General Mills (GIS) Diversified food
company
Groupe Danone (GDNNY) Food
producer
Hasbro (HAS) Toys, games, etc.
Hershey Foods (HSY) Leader in the
U.S. candy market
Ilitch Holdings Private company
which provides professional and
technical services
In-N-Out Burgers Private chain of
fast-food restaurants
J.M. Smucker Co. (SJM) Jams,
preserves, peanut butter, etc.
Johnson & Johnson (JNJ)
Consumer products, medical devices,
pharmaceuticals
Jones Apparel (JNY) Women’s
apparel
Kellogg (K) Cereals and other foods
Kraft Foods (KFT) Diversified food
company
Limited Brands (LTD) Apparel and
personal care products
Mars, Inc. Private manufacturer of
confectionery, pet food and other food
products
Task Three – Before You Invest-What Is a Company?
11
McDonald’s (MCD) One of the
world’s largest chains of fast food
restaurants
PepsiCo (PEP) Soft drinks and
snacks
Pfizer (PFE) Pharmaceuticals,
personal care, etc.
Procter & Gamble (PG) Household
products
Rogers Communications (RCI)
Cable TV
S.C. Johnson & Son Private
manufacturer of household cleaning
supplies
Sara Lee (SLE) Food, apparel,
household products, body care
Sears Holdings Corp. (SHLD)
Department stores
Shell Oil Company A wholly-owned
(completely) member of the Royal
Dutch/Shell Group of companies (RD)
The Gap (GPS) A national clothing
retailer with more than 4,000 stores
The Topps Company (TOPP)
Trading cards, chewing gum, candy
Task Three – Before You Invest-What Is a Company?
12
Brands
Arista Records — This music
company is a noted subsidiary (a
company that is controlled by another
company) of BMG Entertainment,
which is part of Bertelsmann AG.
Bath & Body Works — This
personal care products company
makes scents for its parent, Intimate
Brands. Intimate Brands, in turn, is
owned by Limited Brands.
Ben & Jerry’s — You’ll get left out in
the cold trying to find this producer’s
name on the stock market. The ice
cream is made by Ben & Jerry’s
Homemade, which is part of Unilever.
Is Unilever listed on the stock market?
Now you’re getting warm.
Blockbuster — Blockbuster Inc., is
the largest video-rental chain on the
block.
Burger King — Texas Pacific Group
got hold of a whopper when it bought
this burger maker and made it a
private company.
Cheerios — This popular brand of
General Mills continues to bowl over
hungry consumers.
Cheez-it — The big cheese of crackers
belongs to the Kellogg Co.
Crest — With its big bite on the
toothpaste market, Crest belongs to
Procter & Gamble Co.
Dairy Queen — Berkshire Hathaway
is the parent of this royal subject.
Dannon — This popular yogurt adds
a bit of culture to America’s diet. It’s a
product of Groupe Danone.
Dentyne — One of Adams’ financial
apples. Adams is part of Cadbury
Schweppes PlC.
Disney — Owned by The Walt Disney
Company.
Domino’s — Until 2004, you couldn’t
buy a piece of Domino’s financial pie
because Domino’s Pizza was a private
company. In 2004, it delivered a piece
of its pie to the public.
Doritos — Doritos is a chip off the old
block at Frito-Lay, and Frito-Lay is
more than a snack for parent,
PepsiCo.
Dr. Pepper — This famous brand
sparkles at Dr. Pepper/Seven Up, Inc.,
which is a subsidiary of Cadbury
Schweppes.
Duracell — This battery maker helps
turn on the financial lights at Gillette.
Express — Limited Brands owns this
clothes-minded store.
Fritos — Owned by Frito-Lay
Fruit of the Loom — Look hard and
you’ll find this company underneath
Berkshire Hathaway.
Task Three – Before You Invest-What Is a Company?
13
Gap — Clothing retailer owned by
Gap, Inc.
Good & Plenty — Kisses at Hershey
Foods are good and plenty, but that
company makes more than chocolate.
Jif — Many products at J.M. Smucker
Co., go together like… peanut butter
and jelly.
Merrill Lynch — A financial services
fir.
Minute Maid — Sold under Cappy
brand and owned by Coca-Cola.
Pizza Hut — Yum! Brands have an
appetite for pizza, too.
Taco Bell — At Yum! Brands you can
take a taco to go.
Tropicana Products — With
Tropicana Products, PepsiCo hopes to
squeeze out more earnings for its
stockholders.
Task Three – Before You Invest-What Is a Company?
14