Question : Name profitability ratio based on investment.
Option 1: Return on investment
Option 2: Return on equity
Option 3: Earning per shares
Option 4: Price earnings ratio
Correct Answer: Return on investment
Solution : Answer = Return on Investment
Return on investment (ROI) is the profitability ratio based on investment of Capital Employed. It measures the profitability of an investment relative to its cost, indicating the return generated per unit of investment made in a particular asset or project. Hence, the correct option is 1.
Question : What ratios are affected by "Return on Investment"?
Question : ______________shows the relationship of profit (profit before interest and tax) with Capital Employed.
Question : 9% preference shares of 10 each Rs. 5,00,000, Equity shares of 10 each Rs.1,20,000, Profit after tax Rs.4,20,000, Equity dividend paid 20%, Market price of equity shares Rs.25 each. What will be the earnings per share?
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