As at 31 March 2011 a listed company had no loan notes in issue and its capital employed was £3.9 million. Shown are summaries of the liability side of its Statement of financial position as at 31.3.2012 and Statement of income for the year ended on that date. Which of the following is the correct calculation of its ROCE ratio and the ROE ratio?

Transcribed Image Text:

Ordinary shares Share premium Reserves 9% Loan notes Current liability £'000 2,500 150 1,450 4,100 400 1,500 6,000 Operating profit Interest on loan Profit before tax Taxation Profit after tax Dividend paid Retained profit £'000 746 (36) 710 (150) 560 (120) 440