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    Question

    ABC Ltd.’s net profit is ₹1 crore. Its equity is

    ₹5 crore. The return on equity (ROE) is:
    A 20% Correct Answer Incorrect Answer
    B 25% Correct Answer Incorrect Answer
    C 5% Correct Answer Incorrect Answer
    D 15% Correct Answer Incorrect Answer

    Solution

    ROE = Net Profit / Shareholders’ Equity = ₹1 crore / ₹5 crore = 20%.

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