Question

The relationship between net profit before Tax, interest & dividend and capital employed is known from ________. (Fill in the blank by choosing correct option)
1) Current Ratio
2) Quick Ratio
3) ROI
4) ROCE

Answer 1

3. ROI . Hope this answer will help you

Answer 2

Answer:

The correct answer to the given answer is option (4) ROCE

Explanation:

ROCE stands for return on capital employed. This way is used to measure a company's overall performance.

It is useful in calculating the efficiency and profitability of a company's capital investments.

ROCE = EBIT/ CAPITAL EMPLOYED

EBIT stands for earnings before interest and taxes.

Capital employed depicts the sum of all ordinary and preferred-share capital reserves.