n NISM Certifications
XV NISM Series XV
Medium

A company has paid-up capital of ₹20 lakh, face value ₹10, EPS ₹5, and book value per share ₹25. What is the Return on Equity?

Practice question from NISM XV Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 20%

    Correct answer

  2. B

    15%

  3. C

    150%

  4. D

    Data insufficient

Why this is the answer

ROE = (EPS ÷ Book Value) × 100 = (5 ÷ 25) × 100 = 20%.

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