If the net profit of the firm is OMR 280000 and the capital employed is OMR 1400000, then the return on capital employed will be 20%. During inflation with net profit calculated with replacement cost is OMR 150000 and the capital employed is OMR 2000000. Then the return on capital employed will be: a) 14% b) 6.82% c) 7.5% d) 9%
If the net profit of the firm is OMR 280000 and the capital employed is OMR 1400000, then the return on capital employed will be 20%. During inflation with net profit calculated with replacement cost is OMR 150000 and the capital employed is OMR 2000000. Then the return on capital employed will be: a) 14% b) 6.82% c) 7.5% d) 9%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![If the net profit of the firm is OMR 280000
and the capital employed is OMR 1400000,
then the return on capital employed will be
20%. During inflation with net profit
calculated with replacement cost is OMR
150000 and the capital employed is OMR
2000000. Then the return on capital
employed will be:
a) 14%
b) 6.82%
c) 7.5%
d) 9%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8800517c-468b-4b1e-8fdd-09a6e98d1908%2Fe4eabfe2-f910-4b6d-b268-7dc523c7180d%2Fz65woln_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the net profit of the firm is OMR 280000
and the capital employed is OMR 1400000,
then the return on capital employed will be
20%. During inflation with net profit
calculated with replacement cost is OMR
150000 and the capital employed is OMR
2000000. Then the return on capital
employed will be:
a) 14%
b) 6.82%
c) 7.5%
d) 9%
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