The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to: $\_\_\_\_\_\_\_$

Question $3$ options:

A$)$

the firm's ratios from prior time periods and to the ratios of firms with similar operations.

B$)$

the average ratios of all firms within the same country over a period of time.

C$)$

those of other firms located in the same geographic area that are similarly sized.

D$)$

the average ratios of the firm's international peer group.

E$)$

those of the largest conglomerate that has operations in the same industry as the firm.