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 Posted / 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 |
Post New Answer View All Answers
How can i prepare MIS report for Finance?
Suresh agreed to adjust Ramesh due amount of Rs 15000- from his credit balance
what is non stock?
When is a dedit note raised When is an expense booked
explain about mergers & aquisitions? asked on 30/7/09
Expand------------STRA
You been asked to prepare a training class for completing expense statements. What points will you emphasize to insure accurate expense statements are submitted?
Do v call director in the partnership firm?
1. Cold Ice, Inc. sells ice cream sells for $2 each. The variable costs per ice cream are $1 and the fixed overheard costs are $ 0.35. A summer camp wants to place a one-time order for 100 cone of ice cream at a price of $ 1.25 each. What is the minimum price hot dogs should be charge for this special order?
Is interest of a business unit Operating Expense or Non Operating Expense
can any one tell me what kind of qns are asked in gail entrance test. i m apearing for the exam of accounts & finance. please let me know the ans on my id pragneshmall1@gmail.com
Why we have to present first and second draft(Bill of Exchange) for bank negotiation.Why cant we present only One draft?
What is Analysing
Expand--------OTA
how to maintain stock if any entry mismatch pllzz tell me short cut