Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

The total share capital of ABC Private Limited is Rs 50 lacs. The amount of debt is Rs 20 lacs. The company has earned a profit of Rs 10 lacs during the current financial year. Its return on investment (ROI) for the present year is:

Options:

10%

20%

40%

28.57%

Correct Answer:

28.57%

Explanation:

ROT=EBIT/Total Investment × 100

=20,00,000/70,00,000*100 =28.57%