According to Tobin's Q

question 30

Multiple Choice

According to Tobin's q,

• A)when the stock market is high,firms do not change their investment.
• B)when the stock market is low,firms increase their investment.
• C)when the stock market is high,firms increase their investment.
• D)firms' decisions on investment do not depend on the stock market.

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Definitions:

Purchase Order

A document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Receiving Report

A document used by a company to record the receipt of purchased goods, verifying that the goods have been delivered as per the purchase order.

Invoice

A document issued by a seller to a buyer, detailing products or services provided, amounts owed, and payment terms.

Merchandise Inventory

The value of a company's goods that are ready for sale to customers during an accounting period.