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Which of the following is the best method of determining whether the financial performance between competitors is sustainable? a) Linking operating drivers directly to return
Which of the following is the best method of determining whether the financial performance between competitors is sustainable?
a) Linking operating drivers directly to return on capital.
b) Comparing the respective ROE and ROA measures.
c) Breaking ROE down into ROIC, tax, interest rate, and leverage effects.
d) Distinguishing between pretax ROIC and the operating-cash tax rate.
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