Calculate the return on the capital employed of the firm is

ABC company has a net profit calculated on the replacement cost is OMR 250,000 and the capital employed is OMR 3000000. The return on the capital employed of the firm is a. 10.33% b. 12% C. 8.33% d. 9.33%

Expert Solution

Calculation of Return on the Capital Employed of the Firm

Given information in the problem

Net profit = OMR 250,000

Capital Employed = OMR 30,00,000

Return on Capital Employed =Net profit / Capital Employed * 100%

= 2,50,000 / 30,00,000 * 100%

= 8.33%

Return on Capital Employed of the firm is 8.33%

Hence,option C.8.33% is the correct choice

option c.8.33% is the correct choice

balaji rao answered 3 years ago

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