Examveda
Examveda

Return on assets = 5.5%, Total assets Rs 3,000 and common equity Rs 1,050 then return on equity would be

A. Rs 22,275.00

B. 15.71%

C. 1.93%

D. 1.925 times

Answer: Option B


This Question Belongs to Commerce >> Financial Management

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Comments ( 3 )

  1. Lokeshwar Reddy
    Lokeshwar Reddy :
    3 years ago

    ROA= net profit /total assets
    Net profit = 3000*5.5%= 165
    ROE = net profit/ equity
    165/1050 =15.71%

  2. Samar Kumar
    Samar Kumar :
    3 years ago

    3000*5.5/100= 165
    (165/1050) *100%= 15.71%

  3. Narsu Narasimha
    Narsu Narasimha :
    6 years ago

    Section 5
    17th question please explain

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