Rule of 72 as a short cut method is explained by the formula:

Related Mcqs:

1. 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

2. 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

3. Total assets divided common equity is a formula uses for calculating___________?

   A. Equity multiplier
   B. Graphical multiplier
   C. Turnover multiplier
   D. Stock multiplier

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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