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The most effective method of evaluating financial performance of a firm is to compare the financial ratios of a firm to what? To key economic

The most effective method of evaluating financial performance of a firm is to compare the financial ratios of a firm to what?

To key economic indicators

To the firm's prior year ratios and to other firms which have a similiar business model

To firms within the same location (i.e. country of corporation)

To the original shareholder's opinions of the firm

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