Read the article “Are the Golden Arches That Tarnished?” in the April 14, 2003, is¬

sue of Business Week. (The book’s Website provides a free link.)

Required 1. The author, Robert Barker, compares Dairy Queen with McDonald’s. Although the two compa¬

nies vary substantially in size, in what two ways does Barker find them similar?

2. In 2002, what was McDonald’s operating cash flow?

3. How does Barker compute the ratio that he calls “cash flow margin”? How does McDonald’s cash flow margin compare with Dairy Queen’s?

4. If free cash flow is defined as operating cash flows minus capital expenditures, what does Barker think might happen to McDonald’s free cash flow in 2003?