SOLUTION
Net Profit before Interest and Tax = 4,00,000
Capital Employed = 15% long-term Debt + Shareholders’ Funds
= 8,00,000 + 4,00,000
= 12,00,000
Return on Investment = Net profit Before Interest and Tax × 100 / Capital Employed
= 4,00,000 × 100 / 12,00,000
= 33.33%