Financial accounting Internet Corporation has an EBIT of $1 million, 30% debt in their capitalstructure, and total capital of $10 million. Their tax rate is 35%. What istheir return on capital employed (ROCE)?a. 6.5%b. 10.0%c. 33.33%d. 21.67%

Step 1: Define Return on Capital EmployedThe overall return that the firm has been able to generate…

Answered: Internet Corporation has an EBIT of $1…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 7EA: Assume Skyler Industries has debt of $4,500,000 with a cost of capital of 7.5% and equity of...

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Internet Corporation has an EBIT of $1 million, 30% debt in their capital structure, and total capital of $10 million. Their tax rate is 35%. What is their return on capital employed (ROCE)? a. 6.5% b. 10.0% c. 33.33% d. 21.67%