Question

If Zephyr Electronics obtains an 18 percent return on invested capital, which of the following willhelp determine if it has a competitive advantage over other pharmaceutical companies?

a. comparing the return to the return on invested capital obtained by other firms in theindustry
b. assessing the value based on the shareholders' expectations of return on their capital
c. evaluating the liquidity ratios for other pharmaceutical companies
d. comparing the value to the history of the firm's return of investment over a number of years

Answer 1

Option A

Step-by-step explanation:

comparing the return to the return on invested capital obtained by other firms in the industry

Option C talks about balancing Assets & liabilities

Option D talks about history of the firm without considering history of other rival companies