Question 1 June 2015

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November 21, 2015 at 4:25 pm #284367
jemma242
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Hi could you help me with June 2015 question one part (iv)
I do not understand how they have arrived at the capital employed figure.
Operating profit is $108mil and current ROCE is 41.7% and they have arrived at current capital employed as $170.3, could you help me here please?
Thank you
Jemma
November 22, 2015 at 9:49 am #284481
Ken Garrett
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Appendix 1 shows operating profit of 71 and ROCE = 41.7
ROCE = OP/CE
so,
CE = OP/ROCE = 71/0.417 = 170.3
November 26, 2015 at 11:46 am #285445
learner93
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Sir can explain to me the meaning of part v requirement and how do we suppose to answer it?
November 26, 2015 at 3:47 pm #285516
Ken Garrett
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Have a look at our notes, P42 and our lectures for chapter 5 from about minute 36. Then look at the model answer.
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