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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

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Question 6 (10 points) The following information is from reformulated.pdf

  • 1. 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