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In Roe and Roi numericals, somewhere …

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In Roe and Roi numericals, somewhere they r using after tax and sonewhere before tax to calculate Roi. So which we have to use while solving these numericals? And how r we gonna know when to use after tax or before tax?

Posted by Sataparna Roy 5 years, 7 months ago

CBSE > Class 12 > Entrepreneurship

2 answers

Rohit Kumar Yadav 5 years, 7 months ago

In examination you will calculate ROI in both the ways :- 1) ROI= profit after tax / capital invested 2)Another ways for calculating is not hard only you have to use this formula EBITDA/capital invested Or it will be mentioned in the question paper but if it is not given then to be on safer side use both formula

1Thank You

Muskan Gupta 5 years, 7 months ago

In both the cases we have to use profit after tax only the difference is in the amount we take i.e. in roi we have to take total capital invested and in roe equity the capital which we have invested on our own

2Thank You

ANSWER

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CBSE > Class 12 > Entrepreneurship