To Assess the Adequacy of the Return on Capital Employed

Multiple Choice

To assess the adequacy of the return on capital employed (ROCE) that a firm earned in its most recent financial year,which of the following would not be an appropriate benchmark:

A) The ROCE earned by the same firm in previous years
B) The ROCE earned by competitors during the same period
C) The firm's cost of equity capital
D) The firm's weighted average cost of capital