Question
If a firm has Net Profit of ₹1,20,000, Sales of
₹24,00,000 and Equity Shareholder's Fund of ₹6,00,000, what is the Return on Equity (ROE)?Solution
ROE = Net Profit / Shareholder's Fund = ₹1,20,000 / ₹6,00,000 = 20%
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