Big Mac's and Small Dog's Are Two fiRms That Are

Multiple Choice

Big Mac's and Small Dog's are two firms that are equal in every way except for their retention ratios. Big Mac's has a 50 percent retention ratio. Small Dog's has a 60 percent retention ratio. Given this
Difference,

A) Small Dog's profit margin next year will exceed the profit margin of Big Mac's.
B) Small Dog's dividend payout ratio will exceed that of Big Mac's.
C) Big Mac's plowback ratio will exceed that of Small Dog's.
D) Big Mac's has a higher internal rate of growth than does Small Dog's.
E) Small Dog's has a higher sustainable rate of growth than does Big Mac's.