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

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

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72 divided by the annual interest rate

The Capital Asset Pricing Model calculate expected:

A: Risk

B: Risk and Return

C: Return

D: None of the above

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Risk and Return

A technique uses in comparative analysis of financial statement is____________?

A: Graphical analysis

B: Preference analysis

C: Common size analysis

D: Returning analysis

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Common size analysis

Net income available to stockholders is $125 and total assets are $1,096 then return on common equity would be________?

A: 0.11%

B: 11.40%

C: 0.12 times

D: 12%

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11.40%

Price per share is $30 and an earnings per share is $3.5 then price for earnings ratio would be_____________?

A: 8.57 times

B: 8.57%

C: 0.11 times

D: 11%

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8.57 times

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

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Return on total assets

Price per ratio is divided by cash flow per share ratio which is used for calculating___________?

A: Dividend to stock ratio

B: Sales to growth ratio

C: Cash flow to price ratio

D: Price to cash flow ratio

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Price to cash flow ratio

A techniques uses to identify financial statements trends are included____________?

A: Common size analysis

B: Percent change analysis

C: Returning ratios analysis

D: Both A and B

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Both A and B

Companies that help to set benchmarks are classified as__________?

A: competitive companies

B: Benchmark companies

C: Analytical companies

D: Return companies

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Benchmark companies

The effect of purchasing power or inflation on present value is important because _________?

A: It increases the real value of cash flows received in the future

B: It reduces the real value of cash flows received in the future

C: It has no effect on real value of cash flow received in the future

D: None of these

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It reduces the real value of cash flows received in the future

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