Other things being equal, the ratio of Tobin's q will rise if:
A) stock prices fall.
B) the replacement cost of capital rises.
C) more capital is installed.
D) stock prices rise.
Correct Answer:
Verified
Q28: If Tobin's q is greater than 1,
Q29: Because corporate income tax laws do not
Q30: The corporate income tax is a tax
Q31: Net investment is the:
A) business fixed investment
Q32: Because of the way that U.S. tax
Q34: The investment tax credit:
A) enables a firm
Q35: _ is a share of ownership in
Q36: If corporate profit were defined as the
Q37: Other things being equal, the neoclassical model
Q38: Tobin's q equals the:
A) cost of buying
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