Question: Consider the following information about two companies: Company ACompany BROE 1 4 % 9 % ROA 5 % 7 % ROIC 7 % 8 %

Consider the following information about two companies:
Company ACompany BROE14%9%ROA5%7%ROIC7%8%
Attempt 1/1
Part1
If the operations of both companies are equally risky, which is the better company?
Company A, because its ROE is greater
Both companies are equally good
Company B, because its ROA is greater
Company B, because its ROIC is greater
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