Tobin's Q Is the Ratio of the

question 61

Multiple Choice

Tobin's q is the ratio of the

• A) dividend payments of a firm to the current stock price of the firm.
• B) market value of a firm to the replacement cost of its capital.
• C) current stock price of a firm to the number of outstanding shares of stock in the firm.
• D) current stock price of a firm to the total earnings of the firm.

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Definitions:

Adjusted Cash Balance

The cash amount shown on a company's books after adjustments have been made for checks outstanding, deposits in transit, and other discrepancies.

Check Register

A record kept by an individual or institution to track checks written, deposits made, and the current balance of a checking account.

Bank Statement

A document issued by a bank detailing transactions, balances, and other financial information for a specific account over a period.

Outstanding Deposit

A deposit that has been made but not yet recorded or cleared in the account's balance.