Question
Calculate Rate of Return on Shareholders' Funds
Refer the following summarized Balance Sheet & P&L of AB Ltd. as on 31 ‐ 3 ‐ 2022. Summarized Profit and Loss Account is as under for the year ending on 31 ‐ 3 ‐ '04: Rs. Sales (25% Cash sales) 80,00,000 Less: Cost of goods sold 56,00,000 Gross Profit 24,00,000 Net profit (Before interest and tax 50%) 9,00,000 Calculate the following ratios:Solution
Rate of Return on Shareholders Fund = PAT / SHF X 100 = 4,12,500 / 20,80,000 X 100 = 19.83% SHF = Eq. Sh. Cap. + Pref. Sh. Cap. + Reserves & Surplus – Fictitious Assets SHF = 10,00,000 + 4,00,000 + 7,00,000 ‐ 20,000 = 20,80,000
More Financial Management Questions
- Which of the following best describes the relationship between bond prices and interest rates?
- Which of the following best describes the role of the National Asset Reconstruction Company Ltd (NARCL) in the Indian banking sector?
- Which of these are covered under Regulated Entities (RE): 1. All India Financial Institutions (AIFIs) 2. All Non-Banking Finance Companies (NBFCs), 3. ...
- What is the role of Depository Participants (DPs) in the Indian capital market?
- Which of the following statements about the primary market is correct? 1. It is a market for trading existing securities. 2. It involves the is...
- What is correct for Securitization from the following statements?
- What does first ‘P’ in the security instrument PNCPS, stand for?
- The concept of "Conflict of Interest" in business ethics primarily refers to a situation where:
- A facility to withdraw money from a current bank account without having a credit balance but is limited to the extent of the borrowing limit, which the com...
- A trader purchased certain articles for 155,000. He sold some of articles for 200000. The average percentage of gross margin is 25% on cost. Opening stock ...
