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%
Chapter17: Multinational Capital Structure And Cost Of Capital
Section: Chapter Questions
Problem 12QA
Related questions
Question
What is their return on capital employed on these financial accounting question?
Transcribed Image Text: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%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you