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प्रश्न
State whether following statement is true or false :
ROI is calculated on ownership capital only.
पर्याय
True
False
उत्तर
False
Explanation: ROI, i.e. return on investment, is calculated on total capital employed which is total of ownership capital and debt capital.
Capital Employed = Share Capital + Reserves & Surplus + Long-Term Loans + Debentures – Preliminary Expenses
Alternatively,
Capital Employed = Net Fixed Assets + Long-Term Investments + Working Capital.
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संबंधित प्रश्न
Select the appropriate answer from the alternatives given below & rewrite the completed statement
The relationship between net profit before Tax, interest and dividend and capital employed is known from _____________.
Explain the following :
ROI.
Solve the following:
If total capital invested by company is Rs 5,00,000 and net profit before interest, tax and dividend is Rs 1,60,000, what is ROI?
Explain return on investment (ROI).
Explain the Return On Investment (ROI)
