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%

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter17: Multinational Capital Structure And Cost Of Capital
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What is their return on capital employed on these financial 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%
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%
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