Riccarton Plc has a profit of £250,000 after interest payments of £50,000 and a tax payment of £100,000. The company has long-term borrowings of £450,000, short-term borrowings of £30,000 and equity...

Riccarton Plc has a profit of £250,000 after interest payments of £50,000 and a tax payment of £100,000. The company has long-term borrowings of £450,000, short-term borrowings of £30,000 and equity of £800,000.

Riccarton Plc’s Return on Capital Employed (ROCE) is:

a) None of the above

b) 31.25%

c) 32%

d) 28%