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    • Question

      A firm’s Return on Equity (ROE) is 20%, and its equity

      capital is ₹10,00,000. What is the Net Profit?
      A ₹1,00,000 Correct Answer Incorrect Answer
      B ₹2,00,000 Correct Answer Incorrect Answer
      C ₹5,00,000 Correct Answer Incorrect Answer
      D ₹20,00,000 Correct Answer Incorrect Answer
      E ₹50,000 Correct Answer Incorrect Answer

      Solution

      ROE = Net Profit / Equity ⇒ Net Profit = ROE × Equity = 20% × ₹10,00,000 = ₹2,00,000

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