Five years ago, McDonald’s made a big mistake by selling off its Chipotle stake to refocus on its core products. Today Chipotle has a market cap of $9 billion (10 percent that of McDonald’s) and the revenue growth it generated during these five years would have more than doubled McDonald’s total revenue growth.
If the information given above is true, which of the following must be true?
A. If the ratio of revenue to market cap for McDonald’s has remained equal to that of Chipotle in the last five years, then Chipotle has grown at a significantly faster rate than McDonald’s.
B. Chipotle’s current revenues must be less than the current revenues of McDonald’s.
C. If market cap is directly proportional to the revenue of a company, then Chipotle must have more than doubled its market cap in the last five years.
D. The ratio of revenue to market cap for McDonald’s is significantly lower than that for Chipotle.
E. If both Chipotle and McDonald’s continue to grow at the same pace, then Chipotle will have greater revenues than McDonald’s within the next 10 years.
If the information given above is true, which of the following must be true?
A. If the ratio of revenue to market cap for McDonald’s has remained equal to that of Chipotle in the last five years, then Chipotle has grown at a significantly faster rate than McDonald’s.
B. Chipotle’s current revenues must be less than the current revenues of McDonald’s.
C. If market cap is directly proportional to the revenue of a company, then Chipotle must have more than doubled its market cap in the last five years.
D. The ratio of revenue to market cap for McDonald’s is significantly lower than that for Chipotle.
E. If both Chipotle and McDonald’s continue to grow at the same pace, then Chipotle will have greater revenues than McDonald’s within the next 10 years.
