Net Profit before interest and tax Rs. 80,000; Equity share capital of Rs. 1,20,000; 10% Preference Share Capital of Rs. 50,000; 12% Debentures Rs. 1,00,000; Reserves and Surplus Rs. 1,30,000; Tax rate 50%; Calculate Return on Investment.

30%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

25%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

35%

No worries! We‘ve got your back. Try BYJU‘S free classes today!

20%

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
20%

Net PBIT = Rs. 80,000

Capital Employed = Rs. 1,20,000 + Rs. 50,000 + Rs. 1,00,000 + Rs. 1,30,000 = Rs. 4,00,000

$R O I = \frac{R s . 80, 000}{R s . 4, 00, 000} \times 100$ = 20%

Suggest Corrections

Similar questions

Calculate Return on Investment from the following information :

Net Profit after Tax : Rs. 6,50,000; 12.5% Convertible Debentures : Rs. 8,00,000; Income Tax : 50%; Fixed Assets at cost : Rs. 24,60,000; Depreciation Reserve : Rs. 4,60,000; Current Assets : Rs. 15,00,000; Current Liabilities : Rs. 7,00,000.

From the following information prepare the balance sheet of Jam Ltd. as per the (revised) Schedule VI:

Inventories Rs. 7,00,000; Equity Share Capital Rs. 16,00,000; Plant and Machinery Rs. 8,00,000; Preference Share Capital Rs. 6,00,000; General Reserves Rs. 6,00,000; Bills payable Rs. 1,50,000; Provision for taxation Rs. 2,50,000; Land and Building Rs. 16,00,000; Noncurrent Investments Rs. 10,00,000; Cash at Bank Rs. 5,00,000;Creditors Rs. 2,00,000; 12% Debentures Rs. 12,00,000.

Prepare the balance sheet of Jyoti Ltd. as at March 31, 2017 from the following information:

Building Rs. 10,00,000; Investments in the shares of Metro Tyers Rs. 3,00,000; Stores & Spares Rs. 1,00,000; Discount on issue of 10% debentures Rs. 10,000; Statement of Profit and Loss (Dr.) Rs. 90,000; 5,00,000 Equity Shares of Rs. 20 each fully paid-up; Capital Redemption Reserve Rs. 1,00,000; 10% Debentures Rs. 3,00,000; Unpaid dividends Rs. 90,000; Share options outstanding account Rs. 10,000.

Q. Redeemable Preference shares of Rs.

1, 00, 000

are redeemed at par for which fresh equity shares of Rs.

80, 000

are issued at discount of

10 %

. The amount transferred to capital Redemption Reserve will be _______.

Q. When net profit is Rs

2, 25, 000

, taxes are Rs

25, 000

and Net worth Rs10,00,000$. What is the rate of return on share holder's equity?

Join BYJU'S Learning Program

Net Profit before interest and tax Rs. 80,000; Equity share capital of Rs. 1,20,000; 10% Preference Share Capital of Rs. 50,000; 12% Debentures Rs. 1,00,000; Reserves and Surplus Rs. 1,30,000; Tax rate 50%; Calculate Return on Investment.

The correct option is D 20% Net PBIT = Rs. 80,000 Capital Employed = Rs. 1,20,000 + Rs. 50,000 + Rs. 1,00,000 + Rs. 1,30,000 = Rs. 4,00,000 ROI=Rs. 80,000Rs. 4,00,000×100 = 20%

The correct option is D
20%

Net PBIT = Rs. 80,000

Capital Employed = Rs. 1,20,000 + Rs. 50,000 + Rs. 1,00,000 + Rs. 1,30,000 = Rs. 4,00,000

$R O I = \frac{R s . 80, 000}{R s . 4, 00, 000} \times 100$ = 20%