Practicing Success
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: |
10% 20% 40% 28.57% |
28.57% |
ROT=EBIT/Total Investment × 100 =20,00,000/70,00,000*100 =28.57% |