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.

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Definitions:

Dividend Payout Ratio

A financial metric that measures the proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of its earnings.

Equity Capital

Capital acquired by a corporation in return for partial ownership of the corporation.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost liquidity.

Dividend Reinvestment Plan

A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.