Log on to finance.yahoo.com, and compare Wendy’s International (WEN) and McDonald’s (MCD) internal growth rates and sustainable growth rates by using recent annual data. (Note that the internal growth rate is calculated by using the earnings reinvested in the firm in the current year, not total retained earnings from the balance sheet.) Yahoo also shows the earnings growth that analysts are forecasting for each firm. Are the forecasts supported by the past performance of each firm?

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Wendys and McDonalds are two of the most popular fast food chains in the world They both have strong ... View the full answer