Consider the Fictional Case of the Incredible Shrinking Woman

question 11

Multiple Choice

Consider the fictional case of the incredible shrinking woman. If a fictional shrinking woman shrinks to 0.1 her original height, her total skin area shrinks to

• A)0.1 times its original value.
• B)0.01 times its original value.
• C)0.001 times its original value.
• D)0.0001 times its original value.
• E)none of the above

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Definitions:

EPS

EPS stands for Earnings Per Share, a financial ratio that measures the amount of a company's profit that is allocated to each individual share of its common stock.

Intrinsic Value

The actual, fundamental value of an asset, based on underlying perceptions of its true value including all aspects of the business.

ROE

ROE, or Return on Equity, measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Required Return

The minimum expected return an investor demands for an investment, considering its risk level.