📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    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

    Practice Next
    ask-question