A. 72 divided by the annual interest rate
B. Annual interest rate dividend by 72
C. 72 divided by (annual interest rate multiplied by discount factor)
D. None of these
Related Mcqs:
- Balance Sheet is based upon which of the following formula?
A. Assets = Liabilities – Stockholder’s equity
B. Assets + Liabilities = Stockholder’s equity
C. Assets + Stockholder’s equity = Liabilities
D. Assets = Liabilities + Stockholder’s equity - Formula such as net income available for common stockholders divided by total assets is used to calculate__________________________?
A. Return on total assets
B. Return on total equity
C. Return on debt
D. Return on sales - Total assets divided common equity is a formula uses for calculating___________?
A. Equity multiplier
B. Graphical multiplier
C. Turnover multiplier
D. Stock multiplier - Price per share divided by earnings per share is formula for calculating_________?
A. Price earnings ratio
B. Earning price ratio
C. Pricing ratio
D. Earning ratio - Payment if it is divided with interest rate will be formula of__________?
A. Future value of perpetuity
B. Present value of perpetuity
C. Due perpetuity
D. Deferred perpetuity - A formula of after-tax component cost of debt is___________?
A. Interest rate-tax savings
B. Marginal tax-required return
C. Interest rate + tax savings
D. Borrowing cost + embedded cost - The formula such as, net income available for common stockholders divided by total assets is used to calculate __________?
A. return on total assets
B. return on total equity
C. return on debt
D. return on sales - A formula such as net income available to common stockholders divided by common equity is used to calculate __________?
A. return on earnings power
B. return on investment
C. return on common equity
D. return on interest - The total assets divided by common equity is a formula uses for calculating _________?
A. equity multiplier
B. graphical multiplier
C. turnover multiplier
D. stock multiplier - The price per share divided by earnings per share is the formula for calculating ___________?
A. price earnings ratio
B. earnings price ratio
C. pricing ratio
D. earnings ratio
The correct answer to the question: "Rule of 72 as a short cut method is explained by the formula:" is "72 divided by the annual interest rate".
