How Long Will It Take Your Money to Triple in Value

question 118

Multiple Choice

How long will it take your money to triple in value at 12% compounded quarterly?

• A) 9.3 years
• B) 37.2 years
• C) 10.3 years
• D) 6.9 years

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Definitions:

Sensitivity of EPS

The degree to which a company's earnings per share (EPS) is affected by fluctuations in its operating income.

ROE

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Target Capital Structure

The optimal mix of debt, preferred stock, and common equity that a company aims to maintain for financing its operations.

Debt-equity Ratio

A gauge of how shareholders' equity and debt proportionately finance a company’s assets.