Question 6 10 points The following information is from refor

Question 6 (10 points) The following information is from reformulated financial statements (in millions of dollars): 2007 2008 Net operating assets (NOA)1,9002,400 Net financial obligations (NFO)1.000 A. Calculate ROCE for 2008; use average book value in the denominator.

Solution

ROCE = Net Income / Average Capital employed

2007

2008

Average

Net Operating Assets

1900

2400

2150

Net Financial Obligations

1000

1200

1100

NOA-NFO (Capital Employed)

900

1200

1050

Since you have not provided the complete data, I’ve referred to the same question in our database and used the information.

ROCE = 207/1,050 = 0.1971 or 19.71%

	2007	2008	Average
Net Operating Assets	1900	2400	2150
Net Financial Obligations	1000	1200	1100
NOA-NFO (Capital Employed)	900	1200	1050