If a company's ROI is 7.8% and total investment is ₹30 lakhs, then what will be EBIT?
Answer & explanation
Correct answer: option 3
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.