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Wayside Corporation Has an EBIT of $2 Million, 40% Debt

Question 52

Multiple Choice

Wayside Corporation has an EBIT of $2 million, 40% debt in their capital structure, and has total capital of $10 million. If they are in the 35% tax bracket, what is their return on capital employed (ROCE) ?


A) 20.0%
B) 13.0%
C) 40.0%
D) 21.67%

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