QUESTION 24

If for the most recent year, a firms ROCE is 25.0%, its sales were $1,500,000, its asset turnover is 2.5, its Shareholders Equity balance is $250,000, and its net cost of borrowing after tax (NBC) is 4%, what is its RNOA?

1. 5.7%

2. 8.8%

3. 8.1%

4. 10.4%

QUESTION 23

If for the most recent year, a firms RNOA is 17.5%, its sales were $2,000,000, its asset turnover is 2.0, its operating liability (OL) balance is $250,000, and its short-term borrowing rate (STBC) is 2.5% after tax, what is its ROOA?

1. 14.5%

2. 14.0%

3. 18.0%

4. 18.1%