Return on Capital Employed (ROCE) Calculation Steps:

• Recognize Profit before interest as PBIT (200,000), the numerator for ROCE.
• Determine Capital Employed as total equity: Issued share capital (500,000) + Reserves (160,000) = 660,000.
• Divide PBIT by Capital Employed: 200,000 / 660,000 = 0.303.
• Convert to percentage: 30.3%, matching option C.

Why C is correct:

• ROCE formula is PBIT / Capital Employed; with no debt info, equity serves as Capital Employed, giving exactly 30.3%.

Why the others are wrong:

• A. 19%: No basis in given data; possibly arbitrary or miscalculation.
• B. 21%: Uses net profit (140,000) / 660,000 ≈21%, but ROCE requires PBIT, not net profit (that's closer to ROE).
• D. 40%: Divides PBIT by share capital only (200,000/500,000), excluding reserves from Capital Employed.

Final answer: C