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.

A ROCE = 30%, ROE = 35%
B ROCE = 40%, ROE = 35%
C ROCE = 30%, ROE = 28%
D ROCE = 25%, ROE = 30%
E ROCE = 36%, ROE = 32%
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