n NISM Certifications
XV NISM Series XV
Medium

A firm has 1,50,000 shares outstanding, EPS of ₹8, and book value per share of ₹40. What is its ROE?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    15%

  2. 20%

    Correct answer

  3. C

    25%

  4. D

    30%

Why this is the answer

ROE = EPS ÷ BVPS × 100 = 8 ÷ 40 × 100 = 20%.

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