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Profit Before Finance Costs Is Used in Calculating Return on Total

Question 5

Multiple Choice

Profit before finance costs is used in calculating return on total assets because:


A) interest rates are hard to predict.
B) it is simpler to calculate than profit after deducting finance costs.
C) the efficient use of resources should be examined independently of the method of financing.
D) interest is a tax deduction for a company.

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