A company has 10,00,000 Capital Employed and 10%Debentures of Rs 5,00,000.
Profit after tax is 2,50,000 whereas tax was 50,000. What will be the Return on Investment?

35%

R.O.I = Net profit before interest and tax/ Capital Employed *100
         = 3,50,000/10,00,000 *100
         = 35%
Net profit before interest and tax = Profit after tax + tax + interest
                                                     = 2,50,000 + 50,000 + 50,000 (10% of 5,00,000)
                                                     = 3,50,000