If the Sun's Core Suddenly Shrank a Little Bit, What

question 34

Multiple Choice

If the Sun's core suddenly shrank a little bit, what would happen in the Sun?

• A) The core would heat up, fusion rates would increase, the core would re-expand.
• B) The core would cool off and continue to shrink as its density increased.
• C) The density of the core would decrease, causing the core to cool off and expand.
• D) The core would heat up, causing it to radiate so much energy that it would shrink even more.

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Definitions:

Abnormal Earnings Approach

A method for valuing a company's worth based on the premise that stock prices are influenced by differences between the expected and actual earnings, adjusted for the cost of capital.

Equity Valuation

The process of determining the fair market value of a company's equity or shares.

Positive Abnormal Earnings

Earnings that exceed what is normally expected, based on historical trends or industry standards, often indicating superior performance.

Sustainable Earnings

Refers to the portion of a company's income considered to be predictable, repeatable, or likely to continue in the future.