ComTech Corporation has an EBIT of $1,500,000, 35% debt in their capital structure, and total capital of $18,000,000. Their tax rate is 30%. What is their Return on Capital Employed (ROCE)? a. 10.56% b. 8.33% c. 5.28% d. 7.85%

ComTech Corporation has an EBIT of $1,500,000, 35% debt in their capital structure, and total capital of $18,000,000. Their tax rate is 30%. What is their Return on Capital Employed (ROCE)? a. 10.56% b. 8.33% c. 5.28% d. 7.85%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 7EB: Assume Plainfield Manufacturing has debt of $6,500,000 with a cost of capital of 9.5% and equity of...

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Question

Can you help me with this question answer general accounting?

ComTech Corporation has an EBIT of $1,500,000, 35% debt in
their capital structure, and total capital of $18,000,000. Their tax
rate is 30%. What is their Return on Capital Employed (ROCE)?
a. 10.56%
b. 8.33%
c. 5.28%
d. 7.85%

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