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ROCE with old versus new plants

Two steel makers have the same EBIT and capacity. Company A's plants are 25 years old and mostly depreciated; Company B's are new. Why does A show a much higher ROCE?

A.A's depreciated assets shrink its capital baseB.A must be operationally more efficientC.B's EBIT includes more one-offsD.B has a lower tax rate

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ROCE with old versus new plants

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