In 2012,global Profits for McDonald's Increased by 6

question 230

Multiple Choice

In 2012,global profits for McDonald's increased by 6.3 percent when measured in local currencies,but fell by 0.7 percent when measured in dollars.The reason for this discrepancy is the value of the

• A)euro decreased relative to the British pound.
• B)British pound increased relative to the U.S.dollar.
• C)U.S.dollar increased relative to most other currencies.
• D)U.S.dollar decreased relative to the Japanese yen.

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Definitions:

Conversion Feature

Refers to an option within a bond or preferred stock that allows the holder to convert it into a certain number of shares of the issuing company's common stock.

Dividend Yield

The ratio of a company's annual dividends relative to its share price, indicating how much income investors are getting from their investment.

Yield-To-Maturity

Yield-to-maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures, incorporating both interest payments and the capital gain or loss realized upon maturity.

Zero-Coupon Bond

A bond bought at a price lower than its face value, with no recurring interest payments, that matures at its face value.