Question
Entrepreneurship Question on Return on Equity (ROE)
Riya started a beauty parlour investing ₹ 10,00,000. She invested ₹ 4,00,000 of her own and took a loan of ₹ 6,00,000 @ 10%pa. Her profit after interest tax, depreciation and amortisation is ₹ 20,000. Calculate her return as equity.
A
5%
B
20%
C
10%
D
50%
Answer
5%
Explanation
Solution
The correct option is (A) :5%.