ABC Ltd. has borrowed capital of ₹100 lakh and rate of interest is 12%. Owners capital ₹400 lakh and EBIT for the year is 10% against the sales of ₹1200 lakh. Applicable tax rate is 50%. Determine the percentage of retur
CS Executive · Financial and Strategic Management · PYQS · December 2021
ABC Ltd. has borrowed capital of ₹100 lakh and rate of interest is 12%. Owners capital ₹400 lakh and EBIT for the year is 10% against the sales of ₹1200 lakh. Applicable tax rate is 50%. Determine the percentage of return on investment to owners fund.
Answer & Explanation:
Correct Answer: Option (C)
Official answer key: (C).
Topics: Financial Management
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