A company reports its net profit ratio as 5.4% and its total asset turnover as 7 times.
Question:
A company reports its net profit ratio as 5.4% and its total asset turnover as 7 times. Which of those stated on the right is the correct calculation of the company’s ROCE?
Transcribed Image Text:
5.4/7 = 0.7% 5.4 x 7 = 37.8% a b c 5.4+7= 12.4
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Related Book For
Financial Accounting An Introduction
ISBN: 9780273737650
2nd Edition
Authors: Mr Barry Elliott, Mr Augustine Benedict
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