In 2017 a company was entirely financed by its equity and reserves which total $1000 000....

 

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In 2017 a company was entirely financed by its equity and reserves which total $1000 000. Its return on capital employed (ROCE) was 28%. On 1 January 2018 the company issued a 10% debenture of $300 000. During 2018 the profit from operations increased by 20%. No dividends were paid. What was the ROCE for 2018? A 19.1% B 20.9% C 23.4% D 25.8% In 2017 a company was entirely financed by its equity and reserves which total $1000 000. Its return on capital employed (ROCE) was 28%. On 1 January 2018 the company issued a 10% debenture of $300 000. During 2018 the profit from operations increased by 20%. No dividends were paid. What was the ROCE for 2018? A 19.1% B 20.9% C 23.4% D 25.8%

Answer rating: 100% (QA)

Return on Capital employed ROCE net profit X 100 Capital employed 2017 ... View the full answer