Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The net Sales of W Ltd. is ` 45 crores. Earnings before interest and tax of the company as a percentage of net sales is

The net Sales of W Ltd. is ` 45 crores. Earnings before interest and tax of the company as a percentage of net sales is 12%. The capital employed comprises ` 15 crores of equity, ` 3 crores of 12% Cumulative Preference Share Capital and 13% Debentures of ` 9 crores. Income-tax rate is 30%. Calculate the Return-on-equity for the company.

Step by Step Solution

3.51 Rating (164 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER Heres how to calculate the Returnonequity ROE for W Ltd Calculate Profit Before Tax PBT Earni... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Concise Introduction to Logic

Authors: Patrick J. Hurley, Lori Watson

13th edition

1305958098, 978-1305958098

More Books

Students also viewed these Accounting questions