Net income = ₹3, 00,000/- preferred dividend = ₹30,000/- during the year. In addition it also had ₹30, 00,000 total shares outstanding during the year and ₹5, 00,000/- preferred stock. Calculate ROE of the organization Please show proper step by step calculation
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
H3.
1) Net income = ₹3, 00,000/- preferred dividend = ₹30,000/- during the year. In addition it also had ₹30, 00,000 total shares outstanding during the year and ₹5, 00,000/-
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