According to Tobin's Q Theory,when Equity Prices Are High the Market

question 60

Multiple Choice

According to Tobin's q theory,when equity prices are high the market price of existing capital is ________ relative to new capital,so expenditure on fixed investment is ________.

• A)cheap;low
• B)dear;low
• C)cheap;high
• D)dear;high

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Definitions:

Land Improvements

Enhancements made to a parcel of land, such as fencing, lighting, and paving, that increase the property's value.

Landscaping

The process of making a yard or other piece of land more attractive by altering the existing design, adding ornamental features, and planting trees and shrubs.

New Business Location

The process or act of establishing a company's operations in a different geographical area, often to expand market reach or access new opportunities.

Land

Land refers to a parcel or tract of ground, including any natural resources over or under it, owned or used by a person or organization.