The capital of a company is made up of $40,000 ordinary shares, $45,000 preference shares, $35,000 debentures, and $40,000 reserves. During the year, it makes a profit of $6,000 after all interest totaling $1.200 has been subtracted, but before tax is taken out. The return on capital employed for this company is: O a 5.3% O b. 4.3% Oc 45% O d. 5.5 %
The capital of a company is made up of $40,000 ordinary shares, $45,000 preference shares, $35,000 debentures, and $40,000 reserves. During the year, it makes a profit of $6,000 after all interest totaling $1.200 has been subtracted, but before tax is taken out. The return on capital employed for this company is: O a 5.3% O b. 4.3% Oc 45% O d. 5.5 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The capital of a company is made up of $40,000 ordinary shares, $45,000 preference shares, $35,000 debentures, and
$40,000 reserves. During the year, it makes a profit of $6,000 after all interest totaling $1.200 has been subtracted, but
before tax is taken out. The return on capital employed for this company is:
O a. 5.3%
O b. 4.3 %
Oc 4.5 %
O d. 5.5%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6dfa9e7f-561b-4119-a4f4-86091bb53862%2F40436643-2cfe-40de-9cee-ea994c46b954%2Fmusqq4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The capital of a company is made up of $40,000 ordinary shares, $45,000 preference shares, $35,000 debentures, and
$40,000 reserves. During the year, it makes a profit of $6,000 after all interest totaling $1.200 has been subtracted, but
before tax is taken out. The return on capital employed for this company is:
O a. 5.3%
O b. 4.3 %
Oc 4.5 %
O d. 5.5%
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