Return on common stockholders equity is a profit ratio

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1) The payout ratio measures the percentage of earnings distributed to owners. True/ False

2) Top Down-Forecasting relies on managers to prepare current and specific line item details per the revenue budgeted.. True/ False

3) If a company had retained earnings of $40,000 at the beginning of the year, net earnings of $50,000, and a year ending retained earnings of $90,000, it paid its owners a dividend at some point during the year. True/ False

4) The Rule of 72 suggests that it will take more than 9 years to double your money if you can invest at a 10% annualized compound rate. True/ False

5) Return on common stockholders' equity is a profit ratio. True/ False

Reference no: EM131608735

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