ABC Ltd. firm has a sales of Rs.6 crores, Variable cost Rs.
3.5 crores and Fixed cost of Rs. 0.65 crores.
The firm has debt and equity resources worth of Rs.7 crores
and 10 crores respectively. With the
data given show :
(i) The firm’s ROI.
(ii) EBIT if sales decline to Rs.4 crores.
(iii) If the industry’s assets turnover is 4 times, does the
firm has high or low asset turnover? The
cost of debt is 12%. Ignore taxation.
Answer / chirag patodi
Sales 6.0
Less: Variable Cost 3.5
Contribution 2.5
Less: Fixed Cost 0.65
EBIT 1.85
Less: Interest 0.70
EBT 1.15
Total Investment = Debt + Capital = 7 + 10 = 17 crores
(i) Return on Investment (ROI) =
1.85/17= 10.88%
Is This Answer Correct ? | 10 Yes | 0 No |
what is the meaning of double entry system & Double entry system?
what is purchase consideration?
capital 2000000,sundry crediors 75000, building 150000
Please let me know the journal entry for the below. "A" paid Rs.100 to "C" on behalf of "B"
For how long should prepayments be carried in the books as fictitious asset and when is it ideal for a new coy to pay tax
where does preliminary expenses put in the balance sheet?
Expand---------ECBD
What is an internal invoice?
What is Split And buy-back?
Expand---------MRTD
What are the types of leverage?
i am the student of icwai (intermidiate) What is the tds and how use the different state ..