Question: The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to: the firmis
The most effective method of directly evaluating the financial performance of a firm is to compare the financial ratios of the firm to:
the firmis ratios from prior tine periods and to the ratios of firms with similar operations.
those of other firms located in the same geographic area that are similarly sized.
the average ratios of all fims within the same cointry over a period of time.
the average ratios of the firm's international peer group.
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