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Calculate Return on investment and Debt ...

Calculate Return on investment and Debt to equity ratio from the following information:
Net profit after interest and tax , Rs 300000
10% Debentures , Rs 500000
tax rate, 40%
capital Employed , Rs 4000000

Text Solution

Verified by Experts

(i) Return on investment=`("Net profit before interest and tx")/("Capital employed")xx100`
`=(Rs 550000("note"))/(Rs 400000)xx100=13.75%`
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Knowledge Check

  • Calculate the profits before in terest and tax from the following information Profit after tax= ₹ 1,50,000. Interest.

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    B
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    C
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