If the stock market value of a firm is $10 million and the firm owns $15 million of capital,then Tobin's q equals
A)2/3.
B)1)
C)3/2.
D)4)

Name: If the stock market value of a firm is $10 million and the firm owns $15 million of capital,then Tobin's q equals A)2/3. B)1) C)3/2. D)4)
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Question

Quizplus · Accepted Answer

Tobin's q is calculated as the market value of a firm divided by the replacement cost of the firm's assets. In this case, Tobin's q = $10 million / $15 million = 2/3.

If the Stock Market Value of a Firm Is $10