McDonald's's and Wendy's Case Questions

4. Describe the positive and negative impacts of hedge fund activism on corporate governance in your view.

5. Evaluate Ackmans strategy with Wendys and McDonalds. Ackmans position in both was partly amassed through derivatives. Since his downside risk was lower than that of other McDonalds shareholders, should management have devoted time to his concerns?

6. Assess the merits of McDonalds response to Ackmans demands. Was McDonalds a large bureaucracy unwilling to consider changes that might benefit all shareholders, or did McDonalds management understand the issues better than Ackman?