According to the "Rule of 70," It Will Take 4

question 146

Multiple Choice

According to the "Rule of 70," it will take 4 years for real GDP per capita to double when the growth rate of real GDP per capita is

• A)4 percent.
• B)12.25 percent.
• C)17.5 percent.
• D)28 percent.

---

Definitions:

Price-Earnings Ratio

The Price-Earnings Ratio (P/E Ratio) is a financial metric used to evaluate the value of a company's shares, calculated by dividing the current market price of a stock by its earnings per share.

Return On Total Assets

A financial ratio that measures the profitability of a company relative to its total assets.

Year 2

This refers to the second year of a business or financial operation, often used in context to compare data year-over-year.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the portion of a company's profit allocated to each share of stock.