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Describe system justification theory.What common observations seem to support this perspective?
Operating Leverage
A measure that shows how revenue growth translates into growth in operating income, highlighting the impact of fixed costs.
Financial Performance
An assessment of how well a company can use assets from its primary mode of business and generate revenues.
ROE
Return on Equity; a financial ratio indicating the profitability of a company in relation to its equity capital.
EPS
Earnings Per Share; a metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.
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