9.4 Shania would like to invest in a company which will give her a good rate of return on her investment. She has collected information on four companies. Extracts from their most recent financial statements are given below:

Ambit Ltd Bolsover Ltd Carcan Ltd Delphic Ltd

£000 £000 £000 £000 Operating profit 983.6 647.8 726.8 1,061.4 Finance costs (180.0) (107.0) (151.0) (206.0)

Profit before tax 803.6 540.8 575.8 855.4 Tax (240.0) (160.0) (170.0) (250.0)

Profit after tax 563.6 380.8 405.8 605.4 Share capital 80.0 95.0 86.0 60.0 Ambit Ltd Bolsover Ltd Carcan Ltd Delphic Ltd £000 £000 £000 £000 Retained earnings 4,550.0 3,881.0 3,928.0 7,000.0 Long-term borrowings 2,400.0 1,250.0 1,820.0 2,500.0 Which company currently has the highest pre-tax return on shareholders’ funds?

a) Ambit Limited

b) Bolsover Limited

c) Carcan Limited

d) Delphic Limited