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%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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%
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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