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?

i want job in uae how to apply the job

Fintech is one of the fastest-growing areas for venture capitalists. Expanding the investment in this field open a lot of opportunities and helps organizations to seek employees from Dubai, even if they don't have facilities in U.A.E.

Dubai attracts many investors because of its progress in science and technology over the years

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

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

 

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