Business Arithmetic — Entrepreneurship STD 12 Commerce — Question
CBSE BoardEnglish MediumSTD 12 CommerceEntrepreneurshipBusiness Arithmetic3 Marks
Question
What do you understand by 'Return on Equity?
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Answer
Return on Equity (ROE) is a measure of profitability calculated as a percentage of equity only.$\text{Return on Equity (RoE)}=\frac{\text{Net Income}}{\text{Equity}}\times100$
where, Equity = Money invested by the owner himself.
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