If the Market Value of a Firm Is $6 Billion

question 13

Multiple Choice

If the market value of a firm is $6 billion and Tobin's q is equal to 2,then the replacement cost of installed capital must be ________.

• A)$2 billion
• B)$3 billion
• C)$9 billion
• D)$18 billion

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Definitions:

Mind Reading

A cognitive distortion where an individual believes they know the thoughts and intentions of others without sufficient evidence.

REBT

Rational Emotive Behavior Therapy (REBT) is a form of cognitive-behavioral therapy developed by Albert Ellis that emphasizes identifying irrational beliefs, challenging these beliefs, and ultimately changing behavioral and emotional responses.

ABC Model

A cognitive behavioral therapy framework that describes the relationship between an activating event (A), beliefs (B), and consequences (C), showing how changing one's beliefs can help manage emotional reactions and behaviors.

Irrational Beliefs

Faulty, unrealistic thoughts or assumptions that can lead to emotional distress and unhealthy behavior.