Calculate the return on capital employed if net profit before interest and tax is $440,000, shareholders' funds are $5,000,000 and long-term loans are $4,000,000.
A)4.9%.
B)11.0%.
C)6.2%.
D)12.2%.

Question

Quizplus · Accepted Answer

Return on capital employed = Net profit before interest and tax / (Shareholders' funds + Long-term loans)= $440,000 / ($5,000,000 + $4,000,000)= $440,000 / $9,000,000= 4.9%

Calculate the Return on Capital Employed If Net Profit Before