Dandelion Fields Has a Tobin's Q of

question 38

Multiple Choice

Dandelion Fields has a Tobin's Q of .96. The replacement cost of the firm's assets is $225,000 and the market value of the firm's debt is $109,000. The firm has 20,000 shares of stock outstanding and a book value per share of $2.09. What is the market to book ratio?

• A)2.56 times
• B)3.18 times
• C)3.54 times
• D)4.01 times
• E)4.20 times

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Definitions:

LBW

Low Birth Weight, referring to babies born weighing less than 2,500 grams, which can be due to preterm delivery or intrauterine growth restriction.

Premature Rupture

The early breaking of the amniotic sac before labor begins, often referred to as pre-labor rupture of membranes (PROM).

Membranes

Thin layers of tissue that cover surfaces, line cavities, or separate organs or spaces within the body.

PROM

Prelabor rupture of membranes; a condition in which the amniotic sac breaks before labor begins.