MCQs > Finance & Management > Management Accounting > 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?

Management Accounting MCQs

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?

Answer

Correct Answer: 30%

Explanation:

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