I am a researcher in finance and I am interested in the article of
Dr.McMillan  research project
"The predictive ability and information content of revenue, operating
margin,and operating income beyond aggregate earnings" performed in
2001. I've gone through it via internet.
As it says, to test Hypothesis 1,he ranked the 15
industeries by each economic variable and then placeD the industeries
in high, medium, and low categories according to the level of each
variable .
   
I was wondering what criteria did he use to rank the data from high to low.
 In fact I would like to know how to rank following market structure
characteristics for industries?:
1- operating leverage
2_ finantial leverage
3-growth rate

what equation or mathematical logic would divide above terms to three
levels from high to low?

thank you
ella