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Tobin's Q Is Defined as the Ratio Of

Question 3

Multiple Choice

Tobin's q is defined as the ratio of:


A) the historical value of the firm?s assets to the replacement value of the assets.
B) the market value of the firm?s assets to the replacement value of the assets.
C) the operating cash flow of the firm to the market value of the assets.
D) the operating cash flow of the firm to the total equity of the firm.

Correct Answer:

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