Question
Consider the following information about two companies: Company A Company B ROE 14% 9% ROA 5% 7% ROIC 7% 8% If the operations of both
Consider the following information about two companies:
| Company A | Company B | |
| ROE | 14% | 9% |
| ROA | 5% | 7% |
| ROIC | 7% | 8% |
If the operations of both companies are equally risky, which is the better company?
A. Both companies are equally good
B. Company B, because its ROA is greater
C. Company B, because its ROIC is greater
D. Company A, because its ROE is greater
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Theoretical Foundations For Quantitative Finance
Authors: Luca Spadafora, Gennady P Berman
1st Edition
9813202475, 978-9813202474
