A company makes a profit of $5,000 before
tax and after all interest totaling $1,200 has
been charged. The capital of the company is
made up of $35,000 ordinary shares, $35,000
preference shares, $25,000 debentures and
$30,000 reserves. The return on capital
employed for this company before tax is
Select one:
a. 4.02%
o
b. 6.50%
C. 6.24%
d. 4.96%