If a company's ROI is 7.8% and total inv

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Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

If a company's ROI is 7.8% and total investment is ₹30 lakhs, then what will be EBIT?

Options:

₹2,38,000

₹2,40,000

₹2,34,000

₹4,00,000

Correct Answer:

₹2,34,000

Explanation:

The correct answer is option 3- ₹2,34,000.

EBIT = ROI X Total Investment

ROI = 7.8%

Total Investment = 30 lakh

EBIT = 0.078 X 30,00,000

EBIT = 2,34,000

SO, EBIT is 2,34,000.