ABC Ltd. has a net income of Rs. 10,00,000 and average total assets of Rs. 50,00,000 for the year 2022. Its return on assets (ROA) for the year is 20%. The company has a debt-to-equity ratio of 2:1 and a total asset turnover ratio of 2.5. Calculate the following ratios:

a) Return on Equity (ROE)

b) Debt Ratio

c) Equity Multiplier

d) Gross Profit Margin

(Note: You may assume that there are no other relevant factors or items that need to be considered for these calculations.)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below a Return on Equity ROE Net Income Avera... View the full answer