Formula for Calculating ROE is :

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Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:

Formula for Calculating ROE is :

Options:

$\frac{Net\,Income}{Income-Tax}×100$

$\frac{Net\,Income}{Debt+Equity}×100$

$\frac{Net\,Income}{Equity}×100$

$\frac{Net\,Profit}{Total\,Capital\,Invested}×100$

Correct Answer:

$\frac{Net\,Income}{Equity}×100$

Explanation:

ROE = $\frac{ Net\, Income}{Equity}×100$