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A company has a capital employed of $200,000. It has a cost of capital of 12% per year. Its residual income is $36,000. What is the company’s return on investment?

What is the company’s return on investment?

Option

A%

B%

C%

D%

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Question added by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date Posted: 2016/05/20
naresh seeduri
by naresh seeduri , Engineer , SIMAR INFRASTRUCTURES LIMITED

i want job in uae how to apply the job

Anton Cannon
by Anton Cannon , IT Engineer , Dimension Data

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RASHID MUNIR
by RASHID MUNIR , Assistant Accountant , EL SEIF ENGINEERING CONTRACTING LTD

12 % COST ON THE CAPITAL IS $ 20000*12= 24000 $ 

COMPANY RETURN ON INVESTMENT = 36000 - 24000 = 12000/-

 

Mohammed Osman Chaker Sultani
by Mohammed Osman Chaker Sultani , Production Supervisor , Pure Glass Sharjah LLC

(36,000 + (200,000 x 12%))/200,000 = 30%

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