Practice Return On Investment (roi) Or Capital Employed (1.4.4.5)

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9 questions

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6 sample questions

Question 1.
What is the formula for calculating ROI?
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Think about what you must consider for net profit and capital employed.
Question 2.
Define Capital Employed.
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Consider both equity and debt financing.
3Question 3.
What is the formula for calculating ROI?
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Remember, it requires net profit and capital employed.
4Question 4.
A higher ROI indicates what?
- True
- False
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Think about investor preferences.
Question 5.
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?
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Calculate the ROI for both scenarios using the same formula.
Question 6.
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%?
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Use the original ROI to find original values, then apply the changes to find the new ROI.

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