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# Maths and Inference

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Manager
Joined: 11 Jun 2015
Posts: 79
Location: India
Schools: LBS '21
GMAT 1: 620 Q46 V33

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03 Jul 2018, 06:56
00:00

Difficulty:

(N/A)

Question Stats:

33% (00:05) correct 67% (01:03) wrong based on 6 sessions

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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.
Manager
Joined: 11 Jun 2015
Posts: 79
Location: India
Schools: LBS '21
GMAT 1: 620 Q46 V33

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03 Jul 2018, 06:59
Cannot under option 1 wrt the answer and how its related considering we have no information on Actual revenue value and considering revenue is also 10% of McDonalds how does it translate to rate of growth
Intern
Joined: 22 May 2018
Posts: 36
WE: Project Management (Energy and Utilities)

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03 Jul 2018, 07:07
renjana wrote:
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.
Is it D

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Math Expert
Joined: 02 Sep 2009
Posts: 49430

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03 Jul 2018, 07:17
renjana wrote:
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.

Discussed here: https://gmatclub.com/forum/five-years-a ... l#p1933807

Topic is locked and archived.
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Re: Maths and Inference &nbs [#permalink] 03 Jul 2018, 07:17
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# Maths and Inference

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