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%

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%

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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Hii expert please given correct answer general Accounting question

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%

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