Question: Save and Submit A Click Submit to complete this assessment. Question 7 of 7 Question 7 5 points Save Answer Suppose you are trying to

 Save and Submit A Click Submit to complete this assessment. Question

Save and Submit A Click Submit to complete this assessment. Question 7 of 7 Question 7 5 points Save Answer Suppose you are trying to compare the return on capital between different firms. Which of the following statements about the return on equity (ROE), the return on assets (ROA), and the return on invested capital (ROIC) is true? ol. The ROIC is a better measure than ROE to compare different firms because the ROIC is not affected by differences in leverage. II. The ROIC is a better measure than the ROA to compare different firms because the ROA can be affected by differences in leverage. O III. There is no advantage to using the ROIC relative to the ROE to compare firms as firms with higher a ROE will always have a higher ROIC than firms with a lower ROE. IV. Answers () and (II) are correct. OV. None of the above. A Click Submit to complete this assessment.

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