If the Earth Were Twice as Far from the Sun

question 38

Multiple Choice

If the earth were twice as far from the sun as it presently is, how long (in terms of the present year) would it take it to make one orbit around the sun?

• A) 16 years
• B) 4.0 years
• C) 2.0 years
• D) 5.7 years
• E) 2.8 years

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Definitions:

Price/Earnings Ratio

A valuation metric for a company that measures its current share price relative to its per-share earnings.

Growth Opportunities

Potential scenarios or plans that a company can undertake to increase its market share, revenues, or profitability.

Implied Share Price

The calculated value of a share based on future earnings expectations or business prospects.

Earnings Multiple

A valuation metric that indicates the ratio of a company's market price per share to its earnings per share (EPS), commonly used to gauge stock valuation.