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...