If a firm's q value is low, they would be more likely to
A) sell their own stock.
B) buy bonds.
C) invest in new projects.
D) all of the above.

Question

Quizplus · Accepted Answer

A low q value indicates that the market values the firm's assets less than their replacement cost, suggesting that the firm should invest in buying undervalued assets like bonds rather than investing in new projects or selling stock.

If a Firm's Q Value Is Low, They Would Be