The capital structure of a company at 30 June 2005 is as follows:
                                                                         $m
Ordinary share capital                                     100
Share premium account                                   40
Retained earnings                                            60
10% Loan notes                                               40
The company’s income statement for the year ended 30 June 2005 showed:
                                                                        $m
Operating profit                                                44
Loan note interest                                            (4)
                                                                        –––
Profit for year                                                    40
                                                                        –––
What is the company’s return on capital employed?
A   40/240    =  16 2/3 per cent
B   40/100    =  40  per cent
C   44/240    =  18 1/3 per cent
D   44/200    =  22  per cent

C