Question
Given the Balance Sheet: Equity ₹200 lakh; Long-term
Debt ₹100 lakh; Revenue ₹500 lakh; EBIT ₹120 lakh; Interest ₹20 lakh; Tax rate 30%. Calculate ROCE and ROE.Solution
ROCE = EBIT / (Equity+Debt) = 120/300 = 40%; PAT = (120–20)×(1–0.3)=70; ROE = 70/200 = 35%
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