A McDonald's Big Mac Value Meal Consists of a Big

question 56

Multiple Choice

A McDonald's Big Mac value meal consists of a Big Mac Sandwich,Large Coke,and a Large Fry.Assume that there is a competitive market for McDonald's food items and that McDonald's sells the Big Mac value meal for $4.79.Does an arbitrage opportunity exists and if so how would you exploit it and how much would you make on one extra value meal?

• A)Yes,buy extra value meal and then sell Big Mac,Coke,and Fries to make arbitrage profit of $0.68.
• B)No,no arbitrage opportunity exists.
• C)Yes,buy Big Mac,Coke,and Fries then sell value meal to make arbitrage profit of $1.09.
• D)Yes,buy Big Mac,Coke,and Fries then sell value meal to make arbitrage profit of $0.68.

Identify and manipulate cell and text alignment options.

Understand the application of Excel's conditional formatting and style commands.

Comprehend the management and organization of Excel worksheets and cells.

Learn to effectively use the spell check and ignore functions in Excel.

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Definitions:

Dividend

A dividend is a portion of a company's earnings distributed to its shareholders, reflecting a share of the corporation's profitability decided by the board of directors and paid on a regular basis.

Straight Voting

A method of voting in corporate elections where shareholders must vote for directors individually, allocating one vote per share owned to each board candidate.

Personal Control

The extent to which individuals feel they can control their environment and outcomes, affecting their motivation and behavioral engagements.

Zero Growth Model

A valuation method assuming a company will not grow and will continue to pay a constant dividend indefinitely.