Question : Net Profit after Tax: Rs.6,50,000; 12.5% Convertible Debentures: Rs.8,00,000; Income Tax: 50%; Fixed Assets at cost: Rs.24,60,000; Depreciation Reserve: Rs.4,60,000; Current Assets: Rs.15,00,000; Current Liabilities: Rs.7,00,000. Return on capital employed will be
Option 1: 40%
Option 2: 50%
Option 3: 25%
Option 4: 75%
Correct Answer: 50%
Solution : Answer = 50% ROI = $\frac{6,50,000+1,00,000+6,50,000}{2,00,000(24,60,000-4,60,000)+8,00,000} \times 100$
⇒ $\frac{14,00,000}{28,00,000} \times 100$= 50%. Hence, the correct option is 2.
Question : Which of the following statements is not correct?
Question : To know the return on investment, by capital employed we mean:
Question : Equity Share Capital Rs.35,00,000; Reserve Rs.15,00,000; Debentures Rs.10,00,000; Current Liabilities Rs.8,00,000. What will be debt-equity ratio?
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