If You Could Hop in a Time Machine and Go

question 21

Multiple Choice

If you could hop in a time machine and go back millions of years,which of the following are you unlikely to find when you step out of your time machine?

• A)An Earth whose atmosphere contains eight times more carbon dioxide in its atmosphere than it does today
• B)An Earth with continents and oceans far different from those of today
• C)An Earth so warm that it lacked polar ice caps
• D)An Earth completely inundated by sea,lacking any land masses

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Definitions:

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.

Enterprise Multiple

A ratio used to determine the value of a company that takes into account its debt and equity, calculated by dividing the enterprise value by EBITDA.

EBIT

Known as Earnings Before Interest and Taxes, this financial gauge calculates a firm's profitability without considering interest and income tax charges.