Practice - Return on Investment (ROI) or Capital Employed
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Practice Questions
Test your understanding with targeted questions
What is the formula for calculating ROI?
💡 Hint: Think about what you must consider for net profit and capital employed.
Define Capital Employed.
💡 Hint: Consider both equity and debt financing.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the formula for calculating ROI?
💡 Hint: Remember, it requires net profit and capital employed.
A higher ROI indicates what?
💡 Hint: Think about investor preferences.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A startup requires an investment of ₹10,00,000. If the expected net profit before interest and tax is ₹2,50,000 in its first year, what is the ROI? How will this change if the net profit increases to ₹3,50,000 in the next year?
💡 Hint: Calculate the ROI for both scenarios using the same formula.
If a company’s capital employed doubles but its profit increases by only 50%, what will be the new ROI if the original ROI was 20%?
💡 Hint: Use the original ROI to find original values, then apply the changes to find the new ROI.
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