Tobin's Q is
A) the ratio of the market value of company assets to the replacement costs of the assets.
B) a means to find overvalued stocks: If Q is high it means that the cost to replace a firm's assets is greater than the value of its stock.
C) the same as the price-to-book ratio.
D) the ratio of the market value of company assets to the replacement costs of the assets,as well as a means to find overvalued stocks: If Q is high it means that the cost to replace a firm's assets is greater than the value of its stock.
Correct Answer:
Verified
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