sep22 - One of the major financing components is cash...

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1 Wednesday, Sept 22, 2010
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5 McDonald’s obtains most of its cash from operations. It actually has negative cash flow for investing and financing. The major investing activity for McDonald’s is purchasing property and equipment. McDonald’s pushes cash out for financing. Most of its financing cash outflows go to shareholders in the way of dividends and stock repurchases.
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Unformatted text preview: One of the major financing components is cash outflows for treasury stock repurchases. McDonalds is likely repurchasing shares to minimize the dilutive effect of its option compensation to employees. It could also be a tax-preferred way of providing cash to owners (instead of greater dividends)....
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This note was uploaded on 10/12/2010 for the course ACCT 3220 at Colorado.

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sep22 - One of the major financing components is cash...

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