n NISM Certifications
XV NISM Series XV
Medium

M/s PQR Ltd. has an EPS of ₹7 and a book value per share of ₹35. The paid-up capital is ₹14,00,000. What is the Return on Equity?

Practice question from NISM XV Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. 20%

    Correct answer

  2. B

    100%

  3. C

    10%

  4. D

    Insufficient Data

Why this is the answer

ROE = (EPS ÷ Book Value) × 100 = (7 ÷ 35) × 100 = 20%.

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