Product to Stocks
Or how many Big Macs would it take to buy one share of McDonald's stock?
Once upon a time, there was a student in BIS who would eat at least 5 Stuffed Beef Burritos from Taco Bell a week, YUM!
As I pondered life, my mind drifted -- it drifted to the a world of Chihuahuas, Burritos and stock ownership. At this point, I wondered....I wondered first off, how his belly felt -- then I pondered how many Stuffed Burritos would this particular student have to eat to have that cost equal the purchase of one share of stock in the parent company that owns Taco Bell?
I just needed to follow the trail with things that I do and do not know.
- I know that Stuffed Burritos are made by Taco Bell
- I know that Taco Bell is owned by a subsidiary of Pepsi Cola
- I know it is not Pepsico as that company deals with Pepsi-Cola, Mountain Dew, Diet Pepsi, Aquafina, Lipton Brisk, Mountain Dew Code Red, Sierra Mist, Sobe, Dole, Mug, Diet Mountain Dew, Pepsi Twist Frito-Lay North America, Frito-Lay International, Pepsi-Cola North America, Gatorade/Tropicana North America, PepsiCo Beverages International and Quaker Foods North America
- I know it is owned by YUM - and they own KFC, Pizza Hut, Long John Silver's and A&W All-American Food Restaurants
- I know that those burritos are delicious
- I know that Taco Bell charges $2.99 for a Stuffed Beef Burrito
- I know that a share of YUM is $68.33
- If this student eats his 5 Stuffed Beef Burritos a week - how many burritos would it take to equal the price of one share of stock?
TO DO
With all the above in mind, we thought it would be fun to see how much stuff that students buy on a somewhat regular basis would equate to stock purchases.
Using the following information:
- Open a Word document- save it as Products to Stocks in your Intro to Bus/Mktg folder - link it up too
- Copy the table below into your Word document
- Go to finance.yahoo.com to find the share price for the listed items from the table below
- Divide the share price by the cost of product to determine how many products you would purchase to equal the cost of owning one share of stock
- After you have completed your table- do your written analysis (see question below)
- Save again
TABLE
Combo Meal Number 2 Super Size 20 oz. Mountain Dew Starbucks Espresso Macchiato Frozen Taco Bell Burrito
Urban Outfitters -
Skull Plaque$24.00
UNORTHODOX JUKEBOX by Bruno Mars California Beach Barbie/Ken Gallon of gas Your product - you pick one out and research the info. ?
Written Analysis: Answer the following questions with detailed answers
- 1. What are your initial feelings about investing in the stock market?
- 2. Are you surprised by the costs of stocks?
- 3. Looking at the stocks above and the costs associated with each, is there any stock that interests you? Why or why not?
- 4. What is a product or service (that is legal and publicly traded) that you purchase on a regular basis? What is the share price? How many products would you have to purchase to own one share of stock?
- For those of you who do not ever spend any money on anything - think of something you do on a regular basis like staring at a computer playing games for hours on end, or sitting on a couch for hours on end watching a TV. If this is your m.o. then use a TV. station like ABC or Sega or a company like Laz-e-boy.
- Save Again
