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Help With Unit 31 Chapter 7 Kaplan Home Learning

bonniebonnie Settling In NicelyRegistered Posts: 30
Hi,
I wondered if anyone can help me. I am really struggling with unit 7 - ROCE. There is so much information and I really can't understand what to take from the text...

They explain ROCE & ROI on question's 5.2 & 5.3 - then use a totally different equation on question 5.7. I am so confused. I feel like giving up! My over the phone tutor said that you can use ROCE or ROI, it doesn't matter, this confused me even more. Help!

Comments

  • katsutlieffkatsutlieff Trusted Regular Registered Posts: 459
    I have been shown two equations for calculating ROCE

    Roce= Net profit after all expenses
    Owners capital X100

    Roce= Net profit before interest
    owners capital plus ling term loans X100

    Hope this helps, BPP has not touched on ROI

    Katherine
  • bonniebonnie Settling In Nicely Registered Posts: 30
    Thanks for the reply and equation. It's strange that the BPP hasn't touched on the ROI.

    Oh why are there 2 equations?

    How do you find your course provider? There are a lot of mistakes in Kaplan's books - but the tutors are nice.
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