Discussion Forum : Accounting Ratios
Question -
Net Profit before interest and tax Rs.80,000; Equity share capital (12000 shares of Rs.10 each) 1,20,000; 10% Preference Share Capital Rs.50,000; 12% Debentures Rs.1,00, 000; Reserves and Surplus Rs.130,000; Tax rate 50%; Calculate Return on Investment.
Answer: Option D
:
D
Was this answer helpful ?
:
D
Net PBIT = Rs 80,000
Capital Employed = Rs 1,20,000 + Rs 50,000 + Rs 1,00,000 + Rs 1,30,000 = Rs 4,00,000
ROI=Rs 80,000Rs 4,00,000×100 = 20%
Was this answer helpful ?
Login With Google
Old way of Login
Login With Email
Submit Your Solution hear: