+1 vote
in Class 12 by kratos

The following figures are extracted from the balance sheet of Swadesha Ltd.

Net profit after tax: Rs. 2,00,000

Net profit before tax: Rs. 2,80,000

Total Investment(Owned + Borrowed): Rs. 4,00,000

Own funds: Rs.1,00,000

Calculate Return on Equity for Swadesha Ltd.

1 Answer

+6 votes
by kratos
 
Best answer

Return on Equity = Net profit after tax x 100/ Equity

= 2,00,000/1,00,000 x 100

= 200 %

...