A grocery owner has an equity stake of ₹ 40,000/- in the business. He has borrowed ₹ 60,000/- at the interest rate of 10% per annum. He made a net profit of ₹ 20,000/- in one year. What will be the Return on Equity for the grocery owner?

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KollegeApply · Accepted Answer

50% Explanation: Return on Equity = "Net Income"/"Equity" $\times$ 100 = (20,000)/(40,000) $\times$ 100 = 50%

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