Calculate the Return on Capital Employed If Net Profit Before

question 7

Multiple Choice

Calculate the return on capital employed if net profit before interest and tax is $440,000, shareholders' funds are $4,000,000 and long-term loans are $3,000,000.

• A) 12.2%
• B) 11.0%
• C) 6.2%
• D) 3.1%

---

Definitions:

γ-Butyrolactam

A cyclic amide consisting of a four-carbon ring, used in organic synthesis and pharmaceuticals.

(R)-4-Ethoxypentanenitrile

An enantiomer of a nitrile compound characterized by the presence of an ethoxy group (-OC2H5) on the fourth carbon of a pentane chain.

Propanoic Anhydride

An organic compound derived from propanoic acid, used as a reagent in the synthesis of various organic compounds.

Carboxylic Acid Derivatives

Organic compounds where the hydroxyl group (-OH) of a carboxylic acid is replaced with another functional group, such as an ester, amide, or halide.