Solve the Problem

question 4

Multiple Choice

Solve the problem. Round to the nearest hundredth, if necessary.
-What is 5% of 500?

• A) 25
• B) 2.5
• C) 0.25
• D) 250

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Definitions:

Nondirectional Hypothesis

A hypothesis that predicts the existence of a relationship, not its direction.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management uses equity investments.

Total Capitalization

The total value of a company’s outstanding equity and debt.

Note Payable

A liability in a formal written promise to pay a specific amount of money at a future date or dates.