Question
A company has the following details: • Net
Profit: ₹12 lakh • Equity: ₹60 lakh • Debt: ₹40 lakh • Interest: ₹4 lakh • EBIT: ₹16 lakh Which of the following is correct?Solution
ROE = 12/60 = 20% ROCE = EBIT / (Debt + Equity) = 16/100 = 16%
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