Pinnacle Enterprises has an EBIT of $2 million, 40% debt in their capital structure, and total capital of $15 million. Their tax rate is 30%. What is their Return on Capital Employed (ROCE)? a. 9.33% b. 12.56% c. 15.20% d. 10.45%

Pinnacle Enterprises has an EBIT of $2 million, 40% debt in their capital structure, and total capital of $15 million. Their tax rate is 30%. What is their Return on Capital Employed (ROCE)? a. 9.33% b. 12.56% c. 15.20% d. 10.45%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

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Question

What is their return on capital employed on these financial accounting question?

Pinnacle Enterprises has an EBIT of $2 million, 40% debt
in their capital structure, and total capital of $15 million.
Their tax rate is 30%.
What is their Return on Capital Employed (ROCE)?
a. 9.33%
b. 12.56%
c. 15.20%
d. 10.45%

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