Internet Corporation Has EBIT of $1 Million, 30% Debt in Their

question 92

Multiple Choice

Internet Corporation has EBIT of $1 million, 30% debt in their capital structure, and total capital of $10 million. Their tax rate is 35%. What is their return on capital employed (ROCE) ?

• A)6.5%
• B)10.0%
• C)33.33%
• D)21.67%

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Definitions:

Retirement

The phase of life where an individual stops full-time work, often accompanied by receiving a pension or retirement benefits.

Optimal Purchasing

The process of buying goods or services in the quantity and timing that minimizes costs and maximizes value to the purchaser.

Indifference Curves

Graphical representations used in economics to show different combinations of two goods that give an individual equal satisfaction and utility.

Budget Constraints

The limits imposed on household choices by income, wealth, and product prices, determining the combination of goods and services they can afford.