1. In Exhibit 6.8, the gradual decline in ROIC of the top-performing companies can be explained by...

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1. In Exhibit 6.8, the gradual decline in ROIC of the top-performing companies can be explained by gradual erosion of competitive advantages. What could be the explanation for the gradual increase in ROIC of the bottom performing companies?

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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Jan 20, 2021 09:47 AM

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1. In Exhibit 6.8, the gradual decline in ROIC of the top-performing companies can be explained by...

Question:

DOBROIC Decay Analysis: Nonfinancial Companies F M 1111 Number of years ago an DOBROIC Decay Analysis: Nonfinancial Companies F M 1111 Number of years ago an

Expert Answer:

Answer The ranking of industries by growth is more volatile than their ranking by ROIC This is explained by the fact that over time structural factors ... View the full answer

Corporate Finance

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