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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%

user-image
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 , mechanical engineer , Adani power rajasthan limited

i want job in uae how to apply the job

Anton Cannon
by Anton Cannon , IT Engineer , Dimension Data

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.

يزن حميدان
by يزن حميدان

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

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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