Dixie Supply has total assets with a current book value of $368,900 and a current replacement cost of $486,200. The market value of these assets is $464,800. What is the value of Tobin's Q?
A) 0.79
B) 0.76
C) 0.96
D) 1.26
E) 1.05

Question

Quizplus · Accepted Answer

Tobin's Q is calculated as the market value of assets divided by the replacement cost of assets. Thus, Tobin's Q = $464,800 / $486,200 = 0.96.

Dixie Supply Has Total Assets with a Current Book Value