ABC Manufacturing Limited produces industrial components with a well-established market presence. The company operates under a special tax-free…

ABC Manufacturing Limited produces industrial components with a well-established market presence. The company operates under a special tax-free status granted by the government, which exempts it from corporate income tax obligations. Financial Information The company's financial parameters for the current fiscal year are as follows: Capital Structure Details Total Capital Invested:20,00,000 (20 lakhs)Cost of Equity (K e ): 12% per annumCost of Debt (K d ): 6% per annumWeighted Average Cost of Capital (WACC): 9% per annum Operational Information Annual Sales Revenue:24,00,000 (24 lakhs)Variable Costs: 50% of sales revenueFixed Costs:10,00,000 (10 lakhs) per annum General corporate tax is 25% As a financial analyst, you have been tasked with conducting a comprehensive financial analysis of ABC Manufacturing Limited. Specifically, you are required to: vii. DERIVE ROE from ROI in the following format – Cost of debt = 6% 10% 12% Return on Investment % of Equity Surplus / Deficit from debt payments in % Surplus / Deficit from debt payments in INR Return on Equity in INR=ROI + Surplus – Deficit Return on Equity in % = Return on Equity in INR/Equity