An increase in ROCE could be achieved by Increasing operating profit and capital employed.
举一反三
- The increase in total revenue due to increasing the amount of labor employed by one unit is called the( )
- Economic value added can be improved by A: Increasing profit without using more capital. B: Using less capital to earn the same amount of profit. C: Investing capital in high-return projects. D: Investing capital in low-return projects.
- The following information is available for company X:20X7 20X8Profit7,500 9,000Sales50,000 450,000Capital employed37,500 60,000Calculate the change in ROI from 20X7 to 20X8. A: Decrease from 20% to 15% B: Increase from 1.5% to 2% C: Increase from 7.5% to 13.3% D: Decrease from 100% to 90%
- To meet the pricing objective of maximizing profit margin, _____ pricing strategies is often employed.
- Company A’s capital employed and its adjusted profit is $800m and $500m respectively. Its target capital structure is 75% equity 25% debt. The cost of equity is 18% and pre-tax cost of debt is 12%. What is the value of EVA using Economic Value Added approach?