ROI (Return on Investment) can be decomposed into the following ratios:

Related MCQs

• A project requires an investment of Rs500000and has scrape value of Rs.20000 after five years. It is expected to yield profits after depreciation and taxes during the five years amounting to Rs.40000,Rs60000, Rs.50000,Rs70000 and Rs20000.What is the average rate of return on the investment?
• If risk free rate of return is 8%, Return on market portfolio is 12%, beta = 1.5, then the expected rate of return according to CAPM is equal to
• Return on Investment may be improved by:
• A company has earnings before interest and taxes of Rs1,00,000. It expects a return on investment at a rate of 12.5%. What is the total value of the firm according to MM Theory?
• The cost of capital is the rate of return of a company must earn on investment to maintain ----------------
• You are considering two mutually exclusive investment proposals, project A and project B. B's expected value of net present value is $1,000 less than that for A and A has less dispersion. On the basis of risk and return, you would say that
• ----- is the rate of return that the company must earn on the net funds raised, in order to satisfy the equity shareholders’ demand for return
• If 'r' = 'ke', than MP by Walter's Model and Gordon's Model for different payout ratios would be
• Which of the following helps analysing return to equity Shareholders?
• Which of the following is/ are the drawbacks of Accounting Rate of Return criterion