BPP Black Friday sale!

40% discount on all BPP books specially for OpenTuition students!
Get it here >>

Metis June12 Q1_ROE

This topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
August 27, 2018 at 12:39 pm #469639
sss111
Member
- Topics: 37
- Replies: 5
Hi ! Could you tell me how they got the figures for ROE please?
Thank you for your help!
August 27, 2018 at 12:53 pm #469640
Ken Garrett
Keymaster
- Topics: 10
- Replies: 10538
Per question, profit before interest and tax is 262,322
Interest is 8.4% x (600,000 – 250,000) = 29,400
Profit after int and tax = (262322 – 29400) x 0.7 = 163045
ROE = 163045/250,000 = 65%
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.