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A Company Has Capital Employed of €1,000,000 and Generates a Profit

Question 12

Multiple Choice

A company has capital employed of €1,000,000 and generates a profit after tax of €300,000. The change in return on investment between a Balance Sheet with 60% debt and one with 40% debt is:


A) From 75% to 50%
B) From 50% to 75%
C) From 60% to 43%
D) From 43% to 60%

Correct Answer:

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